Chapter 2 Trade

Q.1 A) Select the correct option and rewrite the sentence. 

1) …………. is the link between producer and retailer.

a) Consumer

b) Wholesaler 

c) Manufacturer

2) Price charged by retailers is generally……….

a) higher

b) lower

c) fixed.

3) A wholesaler invest ………. Capital in the business. 

a) small 

b) large 

c) less.

4) Retailer is the …………..link in the chain of distribution

a) first

b) last

c) second.

5) Retailers supply information to the ……….. through wholesalers.

a) manufactures 

b) government 

c) consumers

6) Major items ……….are chemicals, crude oil and petroleum products, edible oils,

electronic goods, gold and silver, pearl and precious stone.

a) exported by India

b) not exported by India

c) imported by India.

7) For customs clearance the……… is prepared by the exporter.

a) carting Order b) letter of Credit

c) shipping Bill

8) ………… carry goods on their head in baskets or containers.

a) Hawkers

b) Peddlers

c) Cheap Jacks.

9) …………. open their shops on market days i.e. on fixed days.

a) Street traders 

b) Market Traders 

c) Peddlers

10) ………… retailers deal in particular goods.

a) General Stores 

b) Specialty shop retailers 

c) Second hand goods shops.

11) ………. is known as self-service store.

a) Department store

b) Super market

c) Multiple store

C) Give one word/phrase/term, For the following sentences.

1) A person who moves daily from place to place to sell goods.

2) The middleman between wholesaler and consumer.

3) A retail shop which operates through branches.

4) A shop where all goods are available at same price.

5) A retailer who displays his goods on the road.

6) An order placed by an importer for the supply of certain goods.

D) State True or False.

1) Wholesaler keeps large stock of goods.

2) Wholesaler deals in small quantity.

3) A retailer has no direct contact with consumers.

4) Super market shops offer home delivery facilities to customer.

5) Departmental store located out of the city.

6) Customers cannot bargain in one price shop.

7) Letter of Credit is required for obtaining export license.

8) Buying goods from other country is known as export trade.

9) Maintaining high quality is necessary to sustain in export business.

E) Find the odd one.

1) General Stores, Hawkers, Cheap Jacks, Peddlers.

2) Departmental Stores, Chain Stores, Market Trader, One Price Shop.

3) Speciality Shops, Secondhand goods shops, Malls, Authorised Dealers.

F) Complete the sentences.

1) The original form of trade was .................

2) Trade establishes a link between producers and .................

3) The wholesaler provides valuable services to manufactures and .................

4) The wholesaler purchases a large quantity of goods from the .................

5) The wholesaler bears the risk of ................. and market fluctuations.

6) The wholesaler provides financial support to retailers by way of ................. facility.

7) The retailer is the connecting link between the wholesaler and .................

8) ................. is a large retail organization which mainly sells wide variety of food and

grocery items on the basis of ‘self-service’.

9) ................. are retail stores owned by a single organization.

10) The shop where the prices of all products or goods are same is known as .................

11) A modern shopping mall is an ................. term.

12) The Letter of Credit is the safest method of payment in ................. trade.

G) Select the correct option.

1) Wholesaler deals in (small / large) quantity.

2) Departmental store located (in / out of) the city.

3) Customer cannot bargain in (General stores / one price shop).

4) Retailer operates in (global / local) market

5) Departmental store is a (large / small) scale retail shop.

6) Supermarket shop requires (limited / larges) capital.

7) Chain stores are retail store owned by (many / single) organization.

8) The shop where the prices of all the products or goods are (different / same) is known as one price shop.

H) Answer in one sentence.

1) What do you mean by internal trade?

2) Who is known as hawkers?

3) What is the meaning of peddlers?

4) What do you mean by fixed shop retailer?

5) What is meant by small scale fixed retailer?

6) What do you mean by large scale fixed retailers?

7) What is departmental store?

8) What is meant by supermarket shop?

9) What is the meaning of chain stores?

10) What is one price shop?

11) What is mall?

I) Correct the underlined word and rewrite the following sentences.

1) When the trade activities are conducted between two or more countries, it is called as internal trade.

2) Export trade refers to the purchase of good and services from foreign country.

3) The price charged in departmental stores is comparatively less.

4) Wholesaler requires less capital.

5) Tariff rates of various countries affect the internal trade.

J) Arrange in proper order.

1) Retailer, consumer, producer, wholesaler

2) International market, local market, national market, state market

3) Import stage, Pre-import stage, Post-import stage, preliminary stage

Q.2 Explain the following terms/concepts.

1) Wholesale Trade

2) Retail Trade

3) Foreign Trade

4) Letter of Credit

5) One Price Shop

6) Departmental Store

7) General Store

8) Mall

Q.3 Study the following case/situation and express your opinion.

1) Sonupant purchases his grocery material every month from nearest Nandulal grocery shop and he purchases wheat, rice and pulses in bulk for whole year from Gorhe and Son’s, Market yard.

i) Who is wholesaler?

ii) Who is retailer?

iii) Any one difference between wholesaler and retailer 

2) Anurag is selling goods to Japan. Kavita is buying goods from USA where as Ganesh is buying raw material from South Africa and after processing it sells finished goods to Malaysia.

i) Who is exporter?

ii) Who is importer?

iii) What is Entrepot Trade?

Q.4 Distinguish between.

1) Wholesaler and Retailer.

2) Itinerant and Non Itinerant Retailers.

3) General stores and Speciality stores.

4) Departmental stores and Chain store.

5) Import Trade and Export Trade.

Q.5 Answer in brief.

1) State any four features of one price shop.

2) State any four services of wholesalers to manufacturers.

3) Write any four services of retailers to consumers.

4) State any two types of small scale fixed shop retailer.

5) Explain preliminary stage of Import procedure.

6) Explain post-shipment stage of Export procedure.

Q.6 Justify the following statements.

1) Wholesaler sells goods in large quantities.

2) Wholesaler maintains price stability.

3) Retailers provide home delivery of goods to customers.

4) Wholesaler performs various marketing function.

5) Authorized dealer do not have other products of other manufacturers.

6) General stores are generally situated near residential areas.

7) Departmental store has centralized management system.

8) Packing plays an important role in selling the product in the supermarket.

9) Chain stores sell a limited range of goods.

10) There is no scope for bargaining in one price shop.

Q.7 Answer the following

1) What are the main features of wholesaler?

2) Explain the services of retailers to wholesaler.

3) Explain small scale fixed shop retailers.

4) Explain services of wholesalers.

5) Explain different services of retailers.

6) Define import trade. Explain its procedure in detail.

7) What is export trade? Explain its procedure in detail.