Theory question 105
TransportCommerce 2 (answer five questions)
(a) Describe five factors that determine the choice of means of transportation for goods.
(b) Explain five factors that have contributed to the growth of commerce.
Show the model answer
(a) Any five, described: cost/freight charges compared with the value of the goods; nature of the goods – perishable goods need speed, fragile goods safety, bulky goods water/rail, liquids pipeline; speed/urgency of delivery; distance and destination – air or sea for long distances, road for short; safety and security of the goods; availability and regularity of the means; flexibility – road can give door-to-door service; terrain and the facilities available (roads, rail lines, ports).
(b) Any five, explained: specialisation and division of labour, creating surpluses for exchange; development of money as a medium of exchange; improved transport; improved communication (post, telephone, internet); growth of banking and credit facilities; development of insurance, which reduces risks; warehousing; advertising and mass media; large-scale production (industrial revolution); government policies, peace and stability, and growth of international trade and economic groupings; growth of population and income.
In (a) relate each factor to the kind of goods; in (b) show how each factor increased trade.