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SS1: COMMERCE - 2ND TERM

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  1. Modern Trends in Retail Business | Week 1
    2 Topics
    |
    1 Quiz
  2. The Wholesaler | Week 2
    5 Topics
    |
    1 Quiz
  3. Warehouse | Week 3
    3 Topics
    |
    1 Quiz
  4. Foreign Trade (International) | Week 4
    6 Topics
    |
    2 Quizzes
  5. Tariffs & Reasons for The Imposition of Tariffs | Week 5
    5 Topics
    |
    1 Quiz
  6. Functions of Customs & Exercise | Week 6
    4 Topics
    |
    2 Quizzes
  7. Commodity Exchange | Week 7
    7 Topics
  8. Sole Proprietorship | Week 8
    2 Topics
    |
    1 Quiz
  9. Partnership | Week 9
    5 Topics
    |
    6 Quizzes
  10. Money | Week 10
    3 Topics
    |
    2 Quizzes



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Middlemen are wholesalers, agents, or retailers who are involved with the distribution of goods from their place of production to the final consumers. They are the link between the producers and consumers.

Factors that Encourage the Elimination of Middlemen

1. Involvement of Highly Technical Goods:  Goods of a highly technical nature require special handling. In this case, the producer may decide to deal directly with the consumers.

2. Perishable Goods: Goods of perishable nature such as vegetable fruits etc are sold directly to the consumers.

3. Expensive and Fragile Goods: Goods of high value may not be entrusted to the wholesalers because of their low demand.

4. Customized Goods: Goods made according to the specialization of the consumers are delivered directly to them by the producers.

5. Manufacturers Own Retail Shop: The producers may establish their own shop where they sell directly to the consumers thereby avoiding the wholesalers.

6. Branded Goods: Where the goods are branded by the producer’s goods are supplied directly to the consumers.

7. Need for Immediate Feedback: To obtain immediate feedback and information about the performance of their products, they prefer to deal with the consumers.

Problems Encountered by Middlemen in Distribution

1. Inadequate Infrastructural Facilities: The absence of inadequate facilities like electricity and telecommunication have created problems in distribution.

2. Inadequate Storage Facilities: Inadequate storage facilities have led to fluctuations in prices. This mostly affects perishable products.

3. Packaging Problem: Lack of standardized goods due to poor packaging which may result in damage or loss in transit

4. Inadequate Transport Facilities: Poor transport system also affects commodity distribution and marketing in the country due to bad roads.

5. Administrative bottlenecks in the collection and handling of goods, processing of necessary papers at supply point causes delay.

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