AIDS/AUXILARIES TO TRADE

Learning Objective

 To develop awareness about the auxiliaries to trade.

Introduction

   Commerce is the some total of all those processes which are engaged in the transfer of goods and services from the producers to the consumers. Transfer of goods and services involves buying and selling. Buying and selling of goods is termed as trade and there are a lot of activities that are required to facilitate buying and the selling of goods are called services or auxiliaries to trade. The auxiliary services are required to remove various hindrances that act as barriers to exchange of goods.

 

Content Outline	Aids to Trade / Auxiliaries to Trade
Content Analysis:
Terms	Trade, internal trade, external trade, transportation, banking, insurance, advertising, warehousing,
Facts	* Buying and selling of goods is known as trade. * 2 types of trade are there. Internal trade and external trade. * Internal trade means buying and selling of goods within the country. * External trade means buying and selling of goods between persons/firms operating in 2 or more countries. * Activities which support or assist trade are known as auxiliaries/aids to trade. * Auxiliaries/aids to trade are: insurance, banking, advertising, communication, transportation, warehousing * Transportation is helpful to avoid the hindrance of place. * Communication will helpful to remove the hindrance of information. * Banking avoids the hindrance of finance. * Insurance helpful for risk in business. * Warehousing removes the hindrance of time. * Advertising removes the hindrance of knowledge.
Concepts	*Major concept: Auxiliaries to Trade *Minor concept: Transportation, banking, insurance, advertising, communication, warehousing,
Learning objectives	To develop awareness about the auxiliaries to trade.
Learning aids	PowerPoint presentation (PPT)
Pre-requisite	Students should know about an idea of characteristics of business.

Click here to view the Powerpoint presentation on Aids to Trade

Activities which assist or support trade are known as aids to trade / auxiliaries to trade. These activities remove the hindrances/ barriers in connection with production and distribution of goods. 

Production takes place in particular locations but these good are required for consumption at various places in the country. Here there are the hindrances of place. This is removed by transport through various modes such as road, rail or coastal shipping. Transport makes possible the physical movement of materials to the place of production and finished goods from the points of production to the places where they are needed for consumption.

 Communication helps to remove hindrance of exchange of information among producers, traders, and consumers. Postal service, telephone facilities and internet etc are the means of communication.

 Banking helps business activities by removing the hindrance of finance cash credit, overdraft, loans and advances are the example of finance.

Insurance companies help to remove the hindrances of risk in business.
Production and consumption are separated by intervals of time. The production takes place at one time and consumption all throughout the year. so the hindrance of time removed by the service called their warehousing.

Advertising helps in providing required information about products to the consumers inducing them to buy. Thus advertising helps to remove the hindrance of knowledge.

CONCLUSION

Without aids to trade, objectives, operation, and functionality of any trade are nearly impossible to achieve. Hence, these auxiliaries are crucial for commerce and economy.

 Click here to access lessonplan of this topic

Check your knowledge in the G-Form shown below.