State five aids to trade and explain how each facilitates trade

(ii) Banking

(iii) Advertising

(iv) Warehousing

(v) Communication

(vi) Transport

(vii) Tourism

(i) Warehousing ensures the storage of goods till they are wanted. The storage of manufactured goods enables the manufacturers to meet the demands of their customers and to stabilise the prices of goods.

(ii) Advertising stimulates the demand for goods and services by informing the public about the uses of such goods and where to obtain them. The volume of sales is increased.

(iii) Banks aid trade by making funds available to traders and other business establishments in the form of loans. Overdrafts payments for goods are also made through banks.

(iv) Transport provides the means of carrying both raw material and finished goods to where they are needed.

(v) Insurance enables compensation to be paid to the trader. Traders are likely to suffer risks in the course of their trading. These risks can result in the loss of the goods in transit. Loss of goods can also result from fire, flood, etc.

(vi) Communication is the transmission of information from one place to another. The customers and suppliers can get in touch through telephone, telex and postal.