Commerce And Production: Trade And Commerce: Aids To Trade And Logistics (Copy)
Cheat Sheet: 1.1.2 Aids to Trade and Logistics
| Concept | Meaning | Examples |
|---|---|---|
| Aids to Trade | Services that support and facilitate trade and commerce | Banking, insurance, advertising, transport, warehousing, communication |
| Type of Aid | Function | Example |
|---|---|---|
| Communications | Exchange of info between buyers, sellers, and intermediaries | Emails, phone calls, online orders |
| Transport | Moving goods from producers to consumers/markets | Trucks, ships, planes |
| Warehousing | Storage of goods until required for sale | Cold storage for fruits, bonded warehouses |
| Advertising | Informing and persuading consumers about goods/services | TV ads, online ads, billboards |
| Banking | Provides payment facilities, credit, and loans | Trade finance, debit/credit cards |
| Insurance | Protects against risks and losses in trade | Marine insurance for exports |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Concept | Meaning | Examples |
|---|---|---|
| Logistics | Planning, implementing, and controlling the movement and storage of goods in the supply chain | Ensures timely, safe, and cost-effective delivery |
| Element of Logistics | Role | Example |
|---|---|---|
| Transport | Physical movement of goods | Shipping containers overseas |
| Freight Forwarders | Specialists organising shipments and documentation | DHL, FedEx |
| Warehousing | Storage points to manage supply and demand | Distribution centres near cities |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Aids vs Logistics | Aids to Trade | Logistics |
|---|---|---|
| Definition | Services that support the process of trade | Practical handling and movement of goods |
| Scope | Banking, insurance, advertising, etc. | Transport, warehousing, freight forwarding |
| Focus | Facilitating trade in general | Efficient delivery in supply chains |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Example Scenario | Aids to Trade | Logistics |
|---|---|---|
| Exporting mangoes | Advertising to attract buyers, banking for payments, insurance for shipping risks | Freight forwarder arranges shipment, transport to port, warehousing at destination |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course