Aids to trade refer to all those activities that directly or indirectly facilitate the smooth exchange of goods and services. These activities include:
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Transport: This involves the movement of goods from the place of production to the place of consumption. It includes road, rail, air, and sea transport.
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Communication: This refers to the exchange of information between buyers and sellers. It includes telephone, email, fax, and internet services.
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Warehousing: This involves the storage of goods before they are sold. It includes the provision of storage facilities, such as warehouses and cold storage.
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Banking: This allows buyers and sellers to make payments. Traders keep their money in the bank, and customers can also take loans from the bank to run their businesses when the need arises.
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Insurance: This provides protection against loss or damage to goods during transportation or storage. It includes marine insurance, fire insurance, and theft insurance.
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Advertising: This involves the promotion of goods and services to potential customers. It includes the use of media such as television, radio, newspapers, and billboards.
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Salesmanship: This involves the personal selling of goods and services to customers. It includes the use of salespeople, who persuade customers to buy products.
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Mercantile agents: These are intermediaries who help buyers and sellers to find each other. They include brokers, commission agents, and auctioneers.
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Trade promotion organizations: These are organizations that promote trade between countries. They include chambers of commerce, trade associations, and export promotion councils.
In summary, aids to trade are essential for the smooth exchange of goods and services. They include transport, communication, warehousing, banking, insurance, advertising, salesmanship, mercantile agents, and trade promotion organizations.
