Trade and Aids to Trade (Commerce)

What is trade?

The buying and selling of goods and services with the aim of making a profit.

What are aids to trade?

Commercial activities that assist trade to take place.

What are the two types of trade?

Local and Foreign.

What is local trade?

Trade that occurs within a local area, involving retail and wholesalers.

What is foreign trade?

Trade that involves the import and export of goods and services between countries.

What does WABTIC stand for?

Warehousing, Advertising, Banking, Transport, Insurance, Communication.

What does warehousing involve in trade?

The storage of goods before they are sold.

How does advertising assist trade?

By promoting products to attract potential buyers.

What role does banking play in trade?

Facilitates financial transactions and credit essential for trade.

Why is transport important in trade?

It enables the movement of goods from producers to consumers.

What is the significance of insurance in trade?

It protects against potential loss or damage of goods during the trade process.

How does communication aid trade?

By ensuring effective exchange of information among traders.