Define Trade and explain the various types of aids to trade.


All the human activities engaged in buying and selling of products and services comes under trade the intention of creating profit. the thing of trade is to form goods available to those that need them and willing to buy them. Trade is that the end of business activities and involves transfer of ownership Therefore trade includes sale, transfer or exchange of products and services with Ownership.

Aids to trade : Trade or exchange of products involves several difficulties which may be removed by aids to trade. Aids to trade ask those activities which directly or indirectly facilitate smooth exchange of products and services.Aids to trade includes transport, warehousing, banking, insurance, advertising and communication.


1) Transport: All the products aren’t consumed at an equivalent place where they’re produced Goods are to be moved from the places of production to the places where they’re demanded. The activity concerned with the movement of products is named transportation. It are often done by rail, road, water and ai

2) Warehousing: Goods are produced in anticipation of demand. there’s time gap between production and consumption Hence, it became necessary to form arrangements for storage or warehousing Agricultural products like wheat and rice are seasonal in nature but they’re consumed throughout the year On the opposite hand, goods like umbrella and wolen clothes are produced throughout the year but they’re demanded only during particular season. Therefore, these goods got to be stored in warehouses till they’re demand Warehousing creates time utility

3) Insurance : Business is subject to risks and uncertainties. Risks could also be thanks to theft, fire, accident or the other natural calamity. Insurance reduces the matter of risks.

Insurance companies who act as risk bearers cover risks.

4) Banking trade: Banks are the institutions which supply funds for industries and trade. The pool savings from the general public and make them available to industries. So, banking is a crucial Producers and traders require money for carrying on production and performance of commerce


5) Advertising : Exchange of products is feasible only the consumers have the knowledge about the existence of a product. Through advertisement producers communicate all information about the products to the potential consumers. It create a robust desire to shop for the merchandise . Advertising is completed through TV, radio, newspapers, magazines, hoarding, wall posters etc.


6) Communication : Communication means exchange of data from one per son to a different it’s necessary to finalize and settle terms like price, discount, facility of credit etc. Modern means communication like telephone, telex, e-mail, teleconference a crucial role in establishing contact between businessmen, producers and con


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