Explain the following terms/concepts.
1) Wholesale Trade
(I) When goods are purchased in large quantity from the manufacturers or producers for the purpose of resale to retailers, then it is called as wholesale trade
(II) The person doing wholesale business 1s called wholesaler.
(III) Wholesaler acts as a link between manufacturer and retailer.
2) Retail Trade
(I) When goods are sold in smaller quantities to the final consumers, then it is called as retail trade.
(II) The person doing retail trade is called as retailer.
3) Foreign Trade
(I) Trade carried on between two or more foreign countries is called foreign trade.
(II) Foreign trade depends as political relations between two countries.
(III) Procedure of foreign trade is complex, difficult and lengthy.
4) Letter of Credit
(I) A letter of credit is a guarantee issued by the importers bank that it Will honor the payment upto certain amount of export bills to the bank of the exporter.
(II) It is generally demanded by the exporter country.
(III) It gives assurance to exporter country about its payment of goods exported.
5) One Price Shop
(I) The shop where the prices of all the products or goods are same is known as One Price shop.
(II) This shop sells a large variety of goods of daily use at low prices. The products irrespective of their size and quality are sold at one common uniform price.
(III)The price are fixed in advance. Goods like gift articles, watches, shampoos, hair products, household articles, crockery, etc. e.g. shops selling goods for Rs. 49/-, Rs. 99/-, Rs. 199/
6) Departmental Store
(I) Departmental store is a large scale retail shop having different departments and sections for different type of goods in the same building.
(II) It sells large variety of goods under one roof.
(III)E.g. Shopper stop.
7) General Store
(I) General store is a retail shop which deals m a wide variety of goods located m a residential locality
(II) Such store sells goods of daily needs like food grains, soaps, stationery, medicines, oils, biscuits etc.
(III) They provide home delivery to their customers.
(IV) They buy goods from the Wholesalers or directly from the manufacturers.
(I) A mall is a large enclosed shopping complex having various stores, restaurant, cinema hall and other business.
(II) E. g. Phoenix Mall, inorbit Mall, etc.
(iii) It is an American term in which one or move building from a complex.