Question

Discuss the advantages that a merchant enjoys over a weaver.

Answer 1

A merchant enjoys lots of advantages over a weaver in the following ways:

1. A merchant has extensive contacts all over the country while a weaver lacks it.
2. A merchant buys cheap cloth from the weaver and sells it at a higher rate.
3. A weaver is completely dependent on the merchant for his raw material needs.
4. A weaver has no way to find out who is the cloth for or what is the actual market rate of the same. The merchant has direct access to market and buyers. Thus, he can utilise the prevailing conditions to ensure his own profitability.