(a) In what ways does transport aid trade?
(b) Explain the following in connection with water transport:
(i) freight
(ii) charter party.
Explanation
(a) Transport can aid trade in the following ways:
(i) Transportation has the ability to extend a firm's market area.
(ii) It encourages trade between one country and another.
(iii) Transport encourages the development of rural areas.
(iv) It facilitates efficient movement of productive resources.
(V) Transport facilitates quick and efficient distribution of goods in a country.
(vi) Because of the availability of goods and services, the standard of living will be improved.
(vii) Prevention of waste of perishable goods.
(b)(i) Freight; is the amount a person pays to the owner of a carrier for hiring his vessel for the transportation of goods.
(ii) Charter party; is a written agreement providing for the hire of a ship or some part of it for the purpose of transporting goods. The firm or person that charters a ship is known as the Charterer and the agreement states the name of ship, its destination, details of the cargo, the freight paid, etc.