Q.What are the various auxiliaries to trade? Explain briefly.

Five main support services keep goods moving smoothly from producer to consumer, each removing a different obstacle. …

The main auxiliaries to trade, each removing a specific hindrance in the movement of goods from producer to consumer, are as follows. Transport and communication remove the hindrance of place: transport physically carries raw material to factories and finished goods to markets, while communication carries the information needed to plan and coordinate trade. Banking and finance remove the hindrance of finance: banks provide loans, overdrafts and credit facilities to producers and traders, and also provide safe means of making and receiving payment. Insurance removes the hindrance of risk: it allows a trader to transfer the financial risk of loss from fire, theft, accident or marine peril to an insurance company in exchange for a premium. Warehousing removes the hindrance of time: it stores goods safely between the time they are produced and the time they are consumed, which is especially important for seasonal produce like agricultural crops, and it also helps stabilise prices. Advertising removes the hindrance of information: it informs potenti …

Students sometimes describe the auxiliaries without linking each one to the specific hindrance it removes, which loses marks in an examiner's scheme that specific …