A manufacturing firm in Kano produces leather goods in large quantities, exceeding the consumption capacity of the local community. Through commercial activities, the firm sells its surplus across multiple regions and countries. Which fundamental function of commerce is illustrated in this scenario?
- Facilitating mass production by widening the market for goodsCevap
- BOffering direct personal services to individual consumers
- CTransforming basic raw materials into finished consumer items
- DRestricting exchange activities solely to local retail trade
Cevap
Facilitating mass production by widening the market for goods
The correct answer highlights that commerce connects producers with extensive markets outside their immediate locality. Without commerce to transport, store, finance, and insure surplus goods across wide geographical areas, manufacturers would be restricted to small-scale production for local consumption.
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Functions and Importance of Commerce
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