Theory question 107
Distributive Trade(a) What is the normal chain of distribution?
(b) State any three functions of middlemen in the chain of distribution.
(c) Highlight any four problems involved in the distribution of goods in West Africa.
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(a) The normal chain of distribution is the route by which goods move from producer to consumer: manufacturer → wholesaler → retailer → consumer.
(b) Any three: breaking bulk; storage/warehousing; transportation; giving credit; giving market information; grading, packaging and branding; advertising and sales promotion; bearing risks; financing producers.
(c) Any four: poor transport network; inadequate storage facilities; too many middlemen raising prices; hoarding and smuggling; inadequate finance/credit; poor communication; insecurity; poor market information; multiple taxes and checkpoints.
Middlemen are wholesalers and retailers.