Answer the following

1) What are the main features of wholesaler?
A) Meaning.
(I) Wholesalers are those who engage themselves in wholesale trade.
(II) It IS concerned with the buying of goods 1n large quantities from producers and reselling the same in small quantities to the retailers.
(III) Wholesaler is a connecting link between producers on one hand and retailers on the other.
B) Definitions: Philip Kotler “wholesaling includes all activities involved in selling goods or services to those who buy for resale or for business use.”
(C) Features of Wholesaler:
(I) The wholesaler generally deals in one or few items of goods.
(II) Wholesaler requires a large amount of capital to be invested in the business.
(III)Wholesaler buys goods from the manufacturer in large scale.
(IV) Wholesaler sells the goods to retailers as per their requirement.
(V) Wholesaler has direct contact with manufacturer.
(VI) Wholesaler is located in the same area for convenience of the retailer.
(VII) Wholesaler acts as a real risk bearer in the process of distribution.
(VIII) Wholesaler performs various marketing functions.

2) Explain the services of retailers to wholesaler.
Services of Retailers to Wholesalers.
(I)Create demand: Retailers attracts consumers attention towards new products and arrivals in the market through personal salesmanship.
(II) Helps to Distribute: Retailer helps distributing perishable goods which are having short life. He also performs assembling, grading and packing function.
(III) Marketing: Retailers sometimes carry marketing function for the Wholesalers i.e. handling transportation, solving shortage problems, advertise goods, etc.
(IV) Financing: Wholesaler collects order from customers and take advances from them. Then places order to manufacturer. Retailer collects sales proceeds from customers and passes it to the wholesaler and finally it reaches the manufacturer.
(V) Attracts Consumers: Retailer makes an advertising of goods by displaying in the showroom and thus promote sales. This activity directly helps the wholesaler to sell the product.
(VI) Provides Information: Retailer provides information to the wholesaler regarding market and demand of goods by the customers, likes and dislikes of customers, etc.
(VII)Connecting Link: Retailer purchases goods from wholesaler and sells it to the customer and thus act a middleman.
(VIII) Increase Sales: Retailers help the wholesaler to increase his sales by buying goods from him regularly and at short intervals.

3) Explain small scale fixed shop retailers.
Small Scale Fixed Shop Retailers:
Small scale fixed retailers usually run their business operations on a small scale and deal in limited line of goods. Such shops are run by their owners with the help of assistants. These shops are situated in residential areas.
Types of Small Scale Shop Retailers:
(I) General Stores: These shops are found in residential areas and offers shopping convenience to the customers. They deal in Wide variety of goods so there is scope for choice. They deal in almost all household articles and goods of daily use. They provide credit facilities and have personal relation with their customers. They have fixed place of business so the customers have faith and confidence in dealing with them.
(II) Second Hand Goods Shops: As the name indicates these shops deal in used or old goods and articles. They buy goods from individual and not from manufacturers or wholesalers. They repair or overhaul the items. They display them in their shops. Generally people from poor communities prefer to buy from these shops.
(III) Authorised Dealers: These retailers have an authorized dealership of a particular manufacturer’s goods. They sell of consumers requirement goods like T.V. sets, mobile phones, washing machine, etc.
(IV) Specialty Shops: These retailers deal in particular line of goods. They keep a wide variety of items within the same line of products. They offer goods at reasonable prices. They are popular in cities and towns. They provide wide choice to customers. Normally they carry on business on cash basis.

4) Explain services of wholesalers.
Wholesaler provides services to:
(A) Manufacturers and
(B) Retailers
(A) Services of Wholesalers to Manufacturers:
(I) Finance Assistance: Wholesaler provides advance to the manufacturers, so they can do bulk production. Thus, manufacturer can maintain continuous flow of production.
(II) Collecting Order and Distribution of Goods: Wholesaler collects small orders of goods from the retailers then he collects the goods from manufacturer and distributes it to retailers.
(III) Large Purchase: Wholesaler purchases goods on large scale from the manufacturers and sells it to the retailers on behalf of the manufacturers.
(IV) Transportation: Wholesaler sometimes carry the transportation function of manufacturer by himself. So cost and time of manufacturer is saved.
(V) Risk Bearing: He takes a risk of buying goods in big quantity and storing them. This may sometimes lead him to loss.
(VI) Provide Market Information: Wholesaler provides latest information of market condition to manufacturer. On the basis of this information manufacturer changes his production policies and regulates production activities.
(VII) Marketing Function: Wholesaler carries many marketing functions like warehousing, advertising, sales promotion, etc. on behalf of manufacturer.
(VIII) Storage: The wholesaler provides storage facilities for the products manufacture by the producers. This helps them to fill up the time gap between production and consumption of goods.
(B) Services of Wholesaler to Retailers:
(I) Financial Support: Wholesaler provides credit facility, discount facility and financial assistance to their retailers.
(II) Market Information: Wholesaler provides market information to retailers as he has link with various manufacturers. This information is very useful to retailers for purchase of goods.
(III) Risk Bearing: Retailer holds limited stock of goods and avoids the risk of spoilage of goods. Retailer get protected from increase or decrease of prices of goods and fluctuation of demand.
(IV) Stock of Goods: Wholesaler stores the stock of goods for retailers, then retailer supply these goods to customers as per their demands.
(V) Warehousing and Transport: Wholesaler provides the facility of storing of goods as well as transport facility to retailers. They also do home delivery of goods to retailers.
(VI) Regular Supply: Wholesaler assures regular supply of goods to the retailers. Risk of shortage of goods and price fluctuation is reduced.
(VII) Sales Promotion: Wholesaler provides promotional facility to the retailer. He advertises on behalf of retailers and this helps the retailers to increase the sales.

5) Explain different services of retailers.
Retailers provides services to:
(A) Customers and
(B) Wholesaler
(A) Services of Retailers to Customers:
(I) Variety of Goods: Retailer keep different brands of goods which helps the customer to choose.
(II) After Sales Services: After sales services are given for a particular period, which is known as guarantee period for costly and durable goods such as refrigerators, TV. etc. Such services create confidence in minds of consumers for further purchases.
(III) Regular Supply of Goods: Retailer stocks the goods sufficiently which are required by the customers and customers purchases the goods whenever needed.
(IV) Credit Facilities: Retailers provides credit facility to customer which helps him to grow up sales and also it is convenient for the customers to purchase goods.
(V) Home Delivery: Retailer provides home delivery service to the customers which helps him to maintain permanent relationship with the customers.
(VI) Information: Retailer is a link between manufacturer and consumer. He provides valuable information from the customers to the manufacturer so that he can modify the product as per the likes and dislikes of the customers. Complaints regarding defects in goods, improper functioning of the product, constant break down, etc. are passed on to the manufacturers.
(VII) Local Convenience: Retailers are generally located near residential areas. Hence, customers can buy the goods whenever they require.
(VIII) Improves Standard of Living: Retailers help customers to increase their standard of living by making available all the latest types of goods produced.
(IX) Sale of Perishable Goods: Perishable goods like milk, meat, fish, vegetables, etc. require quick distribution. Hence, retailer provides this facility as per customers requirement.
(B) Services of Retailers to Wholesaler:
(I) Create demand: Retailers attracts consumers attention towards new products and arrivals in the market through personal salesmanship.
(II) Helps to Distribute: Retailer helps distributing perishable goods which are having short life. He also performs assembling, grading and packing function.
(III) Marketing: Retailers sometimes carry marketing function for the wholesalers i.e. handling transportation, solving shortage problems, advertise goods, etc.
(IV) Financing: Wholesaler collects order from customers and take advances from them. Then places order to finally it reaches the manufacturer. Retailer collects sales proceeds from customer and passes it to the Wholesaler and finally it reaches the Manufacturer.
(V) Attracts Consumers: Retailer makes an advertising of goods by displaying in the showroom and thus promote sales. This activity directly helps the wholesaler to sell the product.
(VI) Provides Information: Retailer provides information to the wholesaler regarding market and demand of goods by the customers, likes and dislikes of customers, etc.

6) Define import trade. Explain its procedure in detail.
Import trade refers to buying of goods and services from another country or countries i.e. a foreign country. The procedure of import trade varies from one country to another country depending upon the policy implemented in that country. Import of goods and services is controlled by the government in most of the countries India follows the following import procedure, which is divided into four stages.
[A] 1st Stage: Preliminary Stage:1) Registration: In order to carry out import, the importer has to get himself registered with the authorities given below:
(I) Director General Foreign Trade (DGFT) in order to get an Import-Export Certificate Number
(II) The Income Tax department to obtain Permanent Account Number.
(III) To carry out GST formalities.
2) Negotiation or Trade enquiry: The importer must collect information from overseas suppliers regarding the goods he wants to import of a product. It contains details like
(a) Price
(b) Delivery schedule,
(c) Credit period and (d) Terms and conditions of sale, payment and delivery.
[B] 2nd Stage: Pre import Stage:
(I) Import License / Quota Certificate: The Export Import (EXIM) Policy of our country indicates which goods need license for import and which can be imported freely. For goods that require a license, the importer should get a quota certificate and acquire the license. At the time of importing goods, the IEC number is to be mentioned.
(II) Foreign Exchange Clearance: The exporter has to be paid in foreign exchange by the importer as he resides in a foreign country. For this the Indian currency has to be exchanged for foreign currency. This is done by Exchange Control Department of the Reserve Bank of India (RBI). The importer has to get the foreign exchange sanctioned. For this he applies in a prescribed form to a bank authorised by RBI. After scrutiny of the documents, the necessary foreign exchange is sanctioned.
(III) Placing an Order: Once the foreign exchange clearance is obtained from RBI the importer places an import order with the exporter for supply of goods. This order contains information on all aspects relating to the goods to be imported. These include quality, quantity, size, grade, price, packing and shipping, ports of shipment, insurance, delivery schedule and modes of payment. This order is called as indent.
(IV) Letter of Credit: If the exporter agrees to a letter of credit, then the importer obtains it from his bank and forwards it to the exporter. It minimises the risk of nonpayment for the exporter At the same time the importer should arrange for sufficient funds to be paid on delivery of the goods.
(V) Clearing and Forwarding Agent: The importer then appoints C & F agent to look after the various customs formalities and documentation work With respect to import of goods.
(VI) Shipment Advice: Once the goods are loaded on the vessel, the exporter sends a shipment advice to the importer. This document contains details about the goods, invoice number, bill of lading and name of the vessel, the port of export and date of sailing of the vessel. This will help the importer for custom clearance and unloading of goods.
[C] Stage: Import Stage:
(I) Receipt of Document: The importer receives the documents sent by the exporter through his bank. They are as follows Bill of Lading, Certificate of Origin, Certificate of Inspection, Packing List, Commercial Invoice, etc.
(II) Bill of Entry: The clearing and forwarding agents, then prepare a bill of entry. This bill is presented to the dock superintendent for release of goods. The bill of entry has details like number of packages, quality of good and price of goods.
(III) Delivery Order: For taking delivery of the goods a delivery order is needed. This is obtained from the shipping company by the C & F agent. Once this is received the freight charges are paid and goods are allowed to be unloaded from the ship.
(IV) Customer Clearance: The importer has to present the Bill of Lading, Bill of Entry and Packing List to the customer authority who will certify it and give customs clearance.
[D] 4th stage: Posts Import Stage: Various duties have to paid in order to take the goods out of port are:
(I) Port Trust Dues: The clearing and forwarding agent has to make the payment of port trust dues.
(II) Customer Duty: Also paid by the clearing and forwarding agent to the custom authorities.
(III) Insurance Premium: Under the FOB (Free of Board) impact, the importer has to make the payment of Insurance Premium.
(IV) Payment of Freight: The shipping contract will lay down the amount of freight to be paid and it has to be paid by the importer for getting clearance of goods.
(V) Exporters Payment: The exporter draws a bill of exchange on the importer according to the terms and conditions of the contract.
(VI) Follow Up: It is the duty of the importer to take a follow up of the goods. If there are any discrepancies in the Order or goods it has to be intimated to the exporter. Thus, the procedure of importing goods comes to an end. 

7) What is export trade? Explain its procedure in detail.
Trade between two countries is called International Trade. It can be import or export trade. Export trade refers to selling of goods and services to other country or foreign countries
Export procedure is as follows:
There are four stages which help in simplify the export procedure.
[A] Preliminary Stage: This is the first stage which includes the following steps.
1) Registration: The exporter gets himself registered with various authorities in order to conduct export trade like
(I) Director General of Foreign Trade 1n order to obtain Import Export Certificate Number
(II) Income Tax Authority to obtain Permanent Account Number.
(III) Export Promotion Council (EPC) and GST authority.
2) Appointment of Agent: The exporters are supposed to appoint an agent in the foreign country who will look after the order or book order for the exporter.
[B] Pre-shipment Stage:
(I) Receipt of Order: When the exporter receives an order he has to check the details of the order. He also check the restriction of import in the importer’s country.
(II) Letter of Credit: The exporter has to obtain a letter of credit from the importer, which is used to clear the foreign exchanges and other restrictions.
(III) Pre-shipment Finance: The exporter has to meet his working capital needs and for that he has to obtain the pre-shipment finance from his bankers.
(IV) Production of goods: If the exporter is a manufacturer, then he has to produce the goods according to the order placed by the importer, otherwise he has get the necessary goods arranged from his suppliers.
(V) Packaging: Packaging plays a very important role in export business. Goods have to be packed as per the requirement of the importer and it should protect the goods in transit, preserve the quality of goods and carry out promotion of goods.
(VI) ECGC Cover (Export Credit and Guarantee Corporation): In order to protect the goods and cover the credit risks, the exporter must obtain an cover of ECGC. The ECGC covers the risk upto 90%, if the importer fails to make the payment.
(VII) GST formalities (Goods and Service Tax): All formalities regarding GST must be complied With by the exporter.
(VIII) Marine Insurance: For exporting the goods, it is mandatory for the exporter to take a marine insurance policy for the goods exported. This insurance is under CIF (Cost, Insurance and freight) contract.
(IX) Clearing and Forwarding Agents (C & F agents): The exporter has to appoint a clearing and forwarding agent to carry out the necessary formalities of customs. They are also called custom house agents.
[C] Shipment Stage:
(I) Processing of Document: The exporter prepares the shipping bill and gets all the documents Processed at the customs house as required for the export of good
(II) Examination of Goods: The clearing and forwarding agents obtain a document called carting order from the Port Trust Authorities, which allows the exporter to take the goods inside the dock area
(III) Loading of Goods: On examination of the goods, the ‘Customs Examiner’ issues order called Let Export order. This is given to the clearing and forwarding agent by the ‘Customers Preventative Officer (CPO). The goods are then loaded on the ship and the captain of the ship issue a receipt called the ‘Mates Receipt’. Then the C & F agent obtain the Bill of Lading.
[D] Post-shipment Stage:
(I) Shipment Advice: On the dispatch of the goods, the exporter sends shipment advice to the importer Along with it, he also sends the packaging list, commercial invoice and non-negotiable copy of loading.
(II) Presentation of Documents: The necessary documents are presented to the bank for negotiation and realisation of export proceeds.
(III) Realisation of Export incentive: Various incentive like duty drawbacks refunds of GST if paid etc. is given to the exporter by the concerned authorities.
(IV) Follow up: Exporter has to follow up and find out the buyers reaction on the goods he receives This concludes the export procedure.