Describe aids to trade.

Aids to trade (also called auxiliaries to business activities) are services that assist and support trade and industry.

The main aids to trade are:

1. Transportation — Transportation removes the hindrance of place by moving goods from places of production to places of consumption. It overcomes the distance barrier and creates place utility.

2. Warehousing — Warehousing removes the hindrance of time by holding goods after production and until distribution. It makes goods available for sale as and when necessary. Warehouses also protect goods from fire, rain, pests, and theft. Warehousing creates time utility and is a key branch of commerce.

3. Insurance — Business involves risk of loss due to theft, fire, accidents, floods, earthquake, storm, etc. Insurance removes the hindrance of risk by allowing businessmen to protect themselves against these risks.

4. Banking — Businessmen need finance and credit to carry on their activities. Banks remove the hindrance of finance by providing funds through loans, overdrafts, letters of credit, cash credit and discounting of bills. Banks also facilitate transfer of money from one place to another through drafts, cheques, and digital payments.

5. Advertising — Advertising removes the hindrance of knowledge by communicating information about goods and services to prospective consumers. It facilitates mass distribution of goods by persuading people to buy. Advertising is done through newspapers, magazines, TV, radio, internet, and outdoor media.

6. Packaging — Packaging means designing and producing packages for different products to protect them during transportation, storage, and use. Attractive packaging also acts as a silent salesman and helps in product identification.

Together, these aids to trade form the supporting infrastructure of commerce.