6 Aids to Trade in Commerce are listed and explained in this article. We hope you find it informative, and able to meet the demands of your research.
Aids to Trade in Commerce
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Aids to trade simply means those activities that help, facilitate, and improve activities of trade or commerce. It can also be called auxiliaries to trade and some of these aids are; Transportation, insurance, banking, advertising, communication, and tourism.
In this article, we will quickly look at the various aids to trade-in details so that you may be able to fully understand the terms used about aids to trade.
Aids to Trade
The following are Aids to Trade:
1. Transportation
As everyone knows, transportation is the movement of raw materials, finished goods, and passengers from one place to another either by road, sea, pipe, rail, or air by the medium of cars, trucks, boats, trains, or planes.
It facilitates and hastens the movement of raw materials, finished products, and people from the point where goods are produced to the point where the produced goods are consumed.
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2. Insurance
This is the policy that contains the protection and shield of lives and properties, preventing them from loss or liabilities, risk or damages which are suffered in the day-to-day activities of the operation of a business.
It has to do with the pool of risk. It plays a vital role in the life of a business by mitigating the risks associated with the business. As I said,
Many policies are usually listed in the insurance contract. Some of the policies are life assurance, burglary insurance, marine insurance, and so on.
3. Banking
A Bank is a financial institution that accepts deposits of money either in cash or Cheque as well as other valuables which includes certificates and jewelry from the public to keep them safe for future use.
Usually, a bank I’d aid to trade because It also provides funds that are needed to undertake the day-to-day activities of the business.
Examples of banks are Central banks, Commercial Bank, Merchant Bank, Mortgage Bank, and Development Bank. The mother of all banks in Nigeria is the Central Bank of Nigeria.
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4. Warehousing
A Warehouse can be defined as a place where goods that have been produced are kept until they are needed by the consumer.
It is an aid-to-trade that enables the producer to have a regular supply of goods and also enjoy a fixed price (i.e. no fluctuation in price since goods have been produced in advance.)
If there is no warehouse, companies will have to produce goods only when it is needed and this would have greatly affected the price of the goods depending on the economy of the nation at a stipulated time.
5. Advertising
For trade to be possible, advertising cannot be left out. Advertising is the process of creating awareness in the minds of the public about the existence of a particular product.
It usually increases the volume of sales of a business. This is because advertising enables a large number of people to know about a product and as a result of this, the total sales of the business will increase rapidly.
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6. Communication
Communication may be defined as sending and receiving meaningful information from one place to another.
It does not take place if the information passed is not meaningful. Communication aids trade in the areas of letters emails, telephoning, courier services, internet, etc.
