3. TRADE TRADE AND HE DISTRIBUTION CHANNELS - It is essential to the service sector and the functioning of the market economy. - It is made up of activities involving an exchange, which brings producers into contact with consumers via distribution channels. - Two types of trade (national trade): - Wholesale: - Companies buy large quantities directly from roducers to sell to shops - Without direct contact with consumers
- Retail: - Establishments buy from wholesalers in order to sell in small quantities - Directly to consumers
- In international trade: - Exports are the goods that a country’s companies sell abroad - Imports are goods purchased from abroad.
- The balance of trade is the monetary difference between exports and imports.
3. TRADE FACTORS AFFECTING THE LOCATION OF RETAIL TRADE -
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Shops are located where there are potential customers. Villages and towns: - Number of shops: - Few establishments and limited selection of products - Level of specialisation: - Simple shops selling basic necessities - Marke area: - Not extend beyond the municipality Small Cities: - Number of shops: - Large number and variety of establishments - Level of specialisation: - Establishments specialising in higher quality goods at a higher prices. - Marke area: - Extends to the towns surrounding this type of city. Large Cities: - Number of shops: - Large number and a variety of commercial establishments - Level of specialisation: - Shops that sell luxury or very specialised items - Marke area: - It is very extensive, with many people travelling to large cities when they want to buy expensive products or obtain specialised services.
3. TRADE TYPES OF RETAIL TRADE 1. Small shops: - They are small family shops which sell a single type of products over a counter. - They operate independently, separate from other shops. 2. Large retail stores: - Retail chains and franchise networks: - Which hold the operaing rights to a product, activity or trade name, granted by a company for a specific area. - Multinational companies: - Which monopolise a large part of the business around the world and are able to buy and sell more cheaply than other retailers. - Types of Retail businesses: A- Hypermarkets: - Large superstores that sell huge quantities of a wide variety of products - using a self-service systemรง - Located in the outskirts of cities B- Retail Parks: - Several hypermarkets which share the same area, not the same building - They offer leisure activities C- Shoping Centres: - They made up of a single building containing a hypermarket, small shops and lots of leisure activities.