Question

Explain five ways in which a warehouse may promote trade.

Answer 1

1. Promote mass production/by allowing the producer to continue producing goods since there is space for storage of (finished)  goods/raw materials
2. Stabilizes prices by regulating the flow of goods/storing the surplus/releasing the goods when demanded.
3. Ensures continuity of supply/steady supply of goods/seasonally produced goods by storing them/releasing to the market/when need arises.
4. It facilitates the preparation/processing of goods of sale by branding/ sorting| packaging  (accept relevant method of preparation for sale as expansion.
5. Creates time utility by ensuring that consumers get goods when required.
6. Ensure safety of goods from physical damage/the damaging effects of weather/pests
7. May add value to some goods, e.g. wine/can improve in quality/taste better when they stay for long time/fetch better prices/better satisfaction of needs
8. Enables traders to look for market/safe goods while they are still in the warehouse
9. Ensure seasonally demanded good are stored until required
10. Bonded warehouses help to store goods awaiting clearance by custom authority/allow the imported to claim the goods/look for money to pay for custom duty/clearance
11. Security for goods/since they are protected from theft/pilferage.