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Difficulty: EasyFactors Affecting the Growth of Commerce

Match each factor affecting the growth of commerce on the left with the specific commercial barrier it helps to eliminate on the right.

  • TransportEliminates the barrier of distance by physically moving goods to consumers
  • BankingEliminates the barrier of finance by providing credit and payment facilities
  • CommunicationEliminates the barrier of information by enabling fast exchange of trade messages
  • WarehousingEliminates the barrier of time by storing goods until they are needed

Answer

Transport pairs with eliminating the barrier of distance; Banking pairs with eliminating the barrier of finance; Communication pairs with eliminating the barrier of information; Warehousing pairs with eliminating the barrier of time.
Each factor corresponds to a distinct auxiliary service that removes a fundamental hindrance to commercial growth: transport overcomes geographical distance, banking provides necessary capital, communication removes information delays, and warehousing spans the gap between production time and consumption time.

Step-by-Step Solution

1
Identify the primary role of Transport in commercial development.
Transport moves raw materials and finished goods, bridging geographical separation (distance).
Producers and consumers are rarely in the same place.
2
Identify the primary role of Banking in commercial expansion.
Banking supplies capital, credit facilities, and secure financial transfer systems (finance).
Trade requires capital for settlement and funding operations.
3
Identify the primary role of Communication in market expansion.
Communication delivers vital news, prices, and orders quickly (information).
Traders require up-to-date market details to make informed transactions.
4
Identify the primary role of Warehousing in maintaining market supply.
Warehousing keeps goods safe until demand arises, balancing supply across seasons (time).
Production often precedes demand chronologically.

Key Concept

Auxiliaries to Trade and Removal of Commercial Barriers
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Topics

Factors Affecting the Growth of Commerce

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