Hindrances to trade

Hindrances to trade, for CBSE Class 11 and Class 12 students.

1. Hindrance of persons
2. Hindrance of place
3. Hindrance of time
4. Hindrance of risk
5. Hindrance of exchange
6. Hindrance of knowledge

Hindrance of Persons: Hindrance of persons (resources) can be overcome by hiring more manpower.

Hindrance of Place: Hindrance of place is generally overcome by taking goods physically from one place to another which through transportation.

Hindrance of Time: Hindrance of time is overcome through systematic storage of goods, also known as warehousing.

Hindrance of risk: Insurance is commonly used to overcome the hindrance of risk (damage/loss of goods in transit or in warehouse).

Hindrance of exchange: Trade helps overcome hindrance of exchange by making available goods and services to the consumer through selling and buying.

Hindrance of information/knowledge: This hindrance can be overcome through communication – by using postal and telecom services.

Hindrance of financing: This is overcome by arranging for money (for payments) through banks and other sources.

Hindrance of promotion: This can be overcome by advertising in different media (traditional as well as digital) and adopting different marketing strategies.

studymumbai

StudyMumbai.com is an educational resource for students, parents, and teachers, with special focus on Mumbai. Our staff includes educators with several years of experience. Our mission is to simplify learning and to provide free education. Read more about us.