Question

Match the problems with international trade in list 1 with their likely impact in list 2.

Answer 1

1) Risk in transit : Risk involved due transporting goods from due to accidents and pirates etc.

2) Investment for longer period : Capital gets blocked or locked up for longer period as it is invesment in capital assets.

3)Distance : Due to long distance of far distance gap between the buyer and seller. The buyer and seller rarely meet each other.

4) Diffculty in transportation : Dispatch and reciept of goods takes a longer time as it may because of unavailability of transportation, no reliable transport etc which may delay the dispatch of goods