Transportation: Importance, Commercial requirements, methods and factors influencing choice

CONTENT

1. Definition
   1. Importance of transportation   to commerce
   1. Commercial requirements of a  good transport system
   1. Factors influencing the choice of type of transportation
   1. Methods of transportation

NOTES

Transportation is the process of conveying goods and  people from one place to another either through water, road, rail or air.

Importance of transportation to commerce and industry.

1. It facilitates quick and efficient distribution of goods and services
2. it encourages large scale production by widening the market for goods and services
3. it improves the people’s standard of living by facilitating their movement and making needed goods available
4. Transportation prevents wastage of perishable goods
5. it enhances specialization  and division of labour
6. it provides employment opportunities and sources of income to operators in the sector
7. it facilitates international trade
8. It leads to speedy economic growth and development.

COMMERCIAL REQUIREMENTS OF A GOOD TRANSPORT SYSTEM

1. Low  cost/ reasonable cost
2. Safety of passengers and good
3. Convenience
   1. Flexibility: i.e easy to adopt to existing situations
   1. Minimum formalities: The procedures involved in its operations must not be complicated
   1. Timing of operations must not be too rigid
4. Speed: especially for urgently needed or perishable goods
5. Reliability: enabling traders to get their goods on schedule

EVALUATION QUESTIONS

1.         How does transportation make modern commerce possible

2.         List seven requirements of a good transportation system.

FACTORS TO BE CONSIDERED IN SELECTING THE RIGHT TYPE OF TRANSPORT FOR THE DELIVERY OF GOODS

1. The distance involved
2. The nature of the goods i.e. perishable, fragile, durable or timed goods
3. The value of the goods
4. The cost of transport/the freight charges
5. The quantity of goods to be conveyed
6. The urgency of delivery
7. The needs and wishes of the consumers/owners of the goods
8. The reputation of the carrier
9. The position or situation of goods involved
10. The customs of the trade or the firm
11. The weight or bulkiness of the goods
12. The type of transportation available in the areas
13. The  destination of the goods

The various methods of transport available for conveying persons or goods from one place to another are:

1. Porte rage
2. Air
3. Beast or burden
4. Pipelines
5. Road
6. Containerization
7. Rail
8. Water.

EVALUATION QUESTIONS

1. List six means of transportation of goods in Nigeria.
2. Describe five factors that determines the choices of means of transportation for goods

GENERAL EVALUATION QUESTIONS

1. Explain five measures taken by a country to promote exports
2. State the difference between an ordinary invoice an a pro forma invoice
3. Explain five roles of transportation to businessmen
4. List and explain five problems associated with international trade
5. Give four advantages and three disadvantages of A. branding B. self service C. vending machine

WEEKEND ASSIGNMENT

1.         The aid to trade responsible for the preservation of perishable items is A. warehousing  B. insurance  C. transportation    D. advertising

2.         The oldest means of transporting goods is by   A. porter   B. lorry  C. train  D. canoe 

3.         In the selection  of means of  transport, speed is an important consideration for goods that are A. bulky  B. durable   C. fragile    D. perishable

4.         Road transport is the commonest means of transport because it is the  A. fasters  B. cheapest  C. most flexible   D. most comfortable.

5.         Which of the following is NOT a means of transportation A. rail  B. pipelines  C. radio

THEORY

1. In which THREE ways does transportation aid commerce
2. Give TWO commercial requirements of a good transport system.

READING ASSIGNMENT

Comprehensive Commerce SSS page 100-114

Essential Commerce for SSS page 214-228