Question

State the role of auxiliaries to trade in trading activities.

Answer 1

Role of auxiliaries in trade:

1. Auxiliaries to trade are all the services which help trade.
2. Trade means the buying and selling of goods. However, buying and selling are not possible unless supported by various services, which will make the trade easier.
3. There are various auxiliaries and services that support buying and selling. They are transport, warehousing, banking, insurance, advertising, etc.
4. These services help both the trader and the buyers. They remove hindrances in the distribution process and ensure the smooth flow of goods from the manufacturer to the consumer.
5. In the modern world, manufacturers and consumers are increasingly distant from each other. It becomes very difficult for the manufacturer to contact the buyers and sell goods directly to them.
6. In this regard, auxiliaries to trade help in establishing a link between the manufacturer or seller and the consumer.