question_answer

One fine day, government announced some policy which was against the interests of truck drivers. As a result, all truck drivers went on strike. Strike continued for three days. It created a calamity kind of situation in the country. People started facing problems even for basic needs. Businesses had to pay labour without work. Many factories could not be operational. Many others had to send goods at a higher price to maintain their market. It led to rise in prices of even basic goods. Ultimately government has to accept the demands of truck drivers so that they discontinue the strike.

(a) In the light of above facts, discuss importance of transportation in business and trade.

(b) How can transportation strike create calamity kind of situation?

Answer:

Ans.     (a) Transportation is extremely important for business and trade.

(i) Transportation removes the hindrance of place and makes goods available to the consumer from the place of production. It helps a factory or business house to get raw material and sell finished goods to the final consumer.

(ii) It helps to stabilize prices by moving the goods from the place where they are in excess supply to the place where they are scarce. Transportation removes the hindrance of place and makes goods available to the consumer from the place of production.

(iii) Transportation is required in the process of production and distribution of finished goods to market.

(iv) Efficient transportation reduces the cost of production and distribution and thereby the selling price of a product - Low price - mass consumption.

(v) It helps to stabilize prices by moving the goods from the place where they are in excess supply to the place where they are scarce.

(b) When basic needs like fruits, vegetables, milk etc. are not available, it creates calamity kind of situation. Household do not get basic needs. Business houses are not getting raw material and are unable to sell their finished goods. Certainly it creates calamity kind of situation in the country.