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MCQs · Q1

Q.Warehousing is regarded as an auxiliary to trade mainly because it bridges the gap of:

(a) place, between producer and consumer
(b) time, between production and consumption
(c) language, between buyer and seller
(d) currency, between exporter and importer
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✓ Free question

Warehousing exists specifically because goods are usually produced at one time (often seasonally) but consumed throughout the year, or vice versa — it is the auxiliary to trade that bridges this gap of time by holding goods safely until they are needed. This is distinct from transport, which bridges the gap of place between where goods are produced and where they are consumed. Options (c) and (d) describe obstacles addressed by other auxiliaries to trade (communication, banking/foreign exchange), not warehousing.

✓Final answer

(b) time, between production and consumption.

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