Wholesale Trade Part 3

Why is the wholesaler being eliminated in some trades?

• Cash and carry warehouses are becoming more popular.

• Large scale retailing has increased.

• Many small scale retailers buy in small quantities.

• Self-service is used in many shops.

What is a major service provided by wholesalers to consumers?

• clearing goods from the manufacturer

• financing production

• steadying supply and prices

• warehousing

What is the work of forwarding agents (freight forwarders)?

• establishing contact between sellers and prospective buyers

• giving guarantees to the sellers that the goods imported will be sold

• offering specialist advice on available transport facilities

• taking possession of goods and selling them in their own names

A wholesaler is most likely to be used when

• a retailer operates on a small scale.

• goods are large and expensive.

• goods are perishable or fragile.

• large orders are made by retailers.

What name is given to the person who does not have possession of the goods, but sells them on behalf of his principal?

• broker

• factor

• insurer

• merchant

What is the main service provided by a wholesaler?

• advice for consumers

• after-sales service

• breaking bulk

• mail order selling

Why is bread distributed as quickly as possible to retailers?

• It has a short shelf-life.

• It is bulky.

• It is fragile.

• It is very cheap.

What is the function of a broker in international trade?

• arranging insurance for goods

• bringing buyers and sellers together

• guaranteeing to sell all goods held

• warehousing goods awaiting sale

What is a reason for the decline in the importance of the wholesaler?

• greater consumer demand

• increased number of independent retail shops

• less theft and damage

• more packaged and branded goods

The diagram shows the channel of distribution used by a Chinese manufacturer to export toys to

Europe.

What does X represent?

• an export agent in Europe

• an import agent in Europe

• the manufacturer’s bank in China

• the port authorities in China