(a) Describe five factors that determine the choice of means of transportation for goods
(b) Explain five factors that have contributed to the growth of Commerce.
Explanation
(a) Factors that determine the choice of means of transportation for goods are:
(i) The cost of transport plays a crucial role in determining whether it will be chosen for the transportation of goods and people.
(ii) Means of transport within a country might not be the same used when another country is involved.
(iii) Bulky goods are better transported through ships while fragile and lighter ones are for airplane.
(iv) When transporting perishable goods such as frozen fish, fruits etc, the speed of any means of transport must be taken into consideration.
(v) Air transport is the best means of transporting urgent goods.
(vi) Bulky or heavy goods are better moved by road, rail and water
(vii) The type of transport available in an area may determine the means.
(vii) Customers' preference or wish will also determine the means to be chosen.
(b) Factors that contribute to the growth of commerce include:
(i) Development of modern technique of Production.
(ii) Improvement in means of communication.
(iii) Population growth and changing consumption patterns
(iv) The role of advertising in disseminating information and persuading consumers to buy certain products or services
(V) Establishment of chambers of commerce.
(vi) Certain products or services.
(vii) The development of difference financial institutions with improved services.
(viii) Political stability.
(ix) Development of efficient means of transportation.
(x) Development of storage facilities.
(xi) Emergence of bilateral and multilateral trade arrangements.