Distinguish between trade and Aids to trade.
Answers
Concept:
The Buying and Selling of goods and services is known as Trade.
And all the activities that support the exchange of goods and services are known as Aids to trade.
Explanation:
The differences between trade and aids to trade are as follows-
• Reach – Trade has a narrow reach while aids to trade have wider reach.
• Purpose- The trade satisfies the social perspective of buyer and seller while aids to trade focuses on generation of revenue.
• Capital Requirement- Trade requires huge amount of capital while aids to trade require comparatively less amount of capital.
• Examples- Trade is just buying and selling of goods and services
Aids to trade include activities like banking, transportation, insurance, advertising, warehousing etc.
Hence we can conclude that for a successful business, trade as well as aids to trade simultaneously play an important role.
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