Theory question 104
Retail Trade(a) State five reasons for the survival of small retail businesses.
(b) Outline five ways a country can correct its balance of payment deficit.
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(a) Any five: personal relationship with customers; sell in very small quantities; give credit to trusted customers; located near customers (convenience); open for long hours; small capital needed to start; low running costs; can bargain prices; provide home delivery and personal services; serve rural areas where big stores are absent.
(b) Any five: increase and diversify exports (export promotion); restrict imports through tariffs, quotas or bans; devalue the currency; exchange control; borrow from abroad/IMF; attract foreign investment; encourage tourism and other invisible exports; encourage local production of imported goods (import substitution); reduce government spending abroad.
Small retailers survive mainly by personal service and convenience.