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Questions and Answers
What is the term used for buying and selling of goods and services within the geographical boundaries of a nation or country?
What is the main objective of trade?
What is the role of wholesalers in the supply chain?
What is the purpose of wholesale trade?
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What enables manufacturers to undertake large scale production?
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Study Notes
Trade Fundamentals
- The term for buying and selling goods and services within a country's geographical boundaries is domestic trade.
Objectives of Trade
- The main objective of trade is to facilitate the exchange of goods and services, allowing nations to meet consumers' needs and desires while improving economic efficiency.
Role of Wholesalers
- Wholesalers act as intermediaries in the supply chain by purchasing large quantities of goods from manufacturers and selling them in smaller quantities to retailers or businesses.
- They help reduce the burden on manufacturers by handling storage, inventory management, and distribution.
Purpose of Wholesale Trade
- Wholesale trade focuses on buying and selling goods in bulk, enabling retailers to acquire products at lower prices and provide access to a wider array of products.
- It streamlines the supply chain by aggregating products from various manufacturers, simplifying the purchasing process for retailers.
Large Scale Production Enablers
- The ability of manufacturers to undertake large-scale production is facilitated by economies of scale, which lower the average costs of production as output increases.
- Access to raw materials, advanced technology, and efficient supply chain management also enables large-scale operations.
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Description
Test your knowledge of internal trade with this quiz. Explore the concepts of buying and selling goods and services within a country's boundaries. Internal trade, profit objectives, and the dynamics of domestic commerce are covered in this quiz.
