<–2/”>a >The Services which involve the activities of buying and selling of goods are termed as trade. Like transport, Communication, Banking etc. it is also a tertiary service and an important Infrastructure-2/”>INFRASTRUCTURE for the development of economy including agriculture and Industry in the country. Trade may take place at various levels -local, regional,
national or international.The Growth of trade depends on accessibility of a well developed market and well advanced communication system.
A regional analysis of trade and payments is particularly relevant for a country like India where the Balance of Payments deficit has already set a limit to the possible rates of her Economic Development.
It can be demonstrated how the changes in the directional pattern of merchandise and non-merchandise transactions over the past decade implied a changed significance of some countries (and currency areas) in India’s Balance of Trade and payments.
India geographically is a vast country with highly variable terrain .the northern plains which are irrigated by the perennial rivers produce huge food grains and have a complex Network of roads and railways. the plateau region is a source of several mineral Resources like coal and iron Ore. the northern hilly region produce vast amount of dry fruits apples and other fruits. in the country there are 8 major industrial belts and several other smaller belts where different types of products are manufactured .thus all these factors cause the inter-regional trade within the country.
The importance of domestic trade in a country is that it facilitates exchange of goods within the country. By doing this it also makes sure that factors of production reach to the right places so that the economy of the country can grow. By allowing all different Types of Goods and services to reach to all parts of the country it improves the standard of living of the residents of the country as well as the EMPLOYMENT rate of the country. And it helps the growth of an industry by ensuring the availability of raw materials.
Internal trade is made up of trade in goods and services across the country. The major problems faced by the trading community are the diversity of controls exercised by multiple authorities at different levels, restrictions on inter-state and inter-district movement of goods, lack of uniformity in standards laid down by different authorities and agencies and in taxes. Pricing strategies get affected by differential tax rates and become localised.
Trade in agricultural products is overshadowed by various restrictions imposed on account of ‘Food Security’ considerations under the Essential Commodities Act. These restrictions may encompass sale and purchase of agricultural produce in organised mandis, storage of essential commodities, transportation of food grains,processing and distribution. Storage controls, together with selective credit policies, severely restrict the capacity of private operators to undertake storage thus reducing their capacity to cover price risks through hedging on futures market. Currently, as part of its selective credit control policy, the RBI sets ‘minimum margins’ on commercial bank advances against a range of ‘sensitive commodities’ such as, food grains, pulses, oilseed, vegetable oils,sugar, gur, khandsari and kapas/Cotton.
Rural Marketing involves a bunch of processes that includes developing, pricing, promoting, distributing rural specific product and service which satisfies the consumer demand and also achieves organizational objectives as expected from the target market. Initially prior to 1960 Rural marketing referred to selling of rural products in rural and urban areas and agricultural inputs in rural markets. It was treated as synonymous to ‘Agricultural Marketing’. Agricultural produces like food grains and industrial inputs like cotton, oil seeds, sugarcane etc. occupied the central place of discussion during this period. The supply-chain activities of firms supplying agricultural inputs and of artisans in rural areas received secondary attention. The local marketing of products like bamboo baskets, ropes, window and door frames, small agricultural tools like ploughs by sellers like black smiths, carpenters, cobblers, and pot makers were emphasised in general. This was totally an unorganized market where all banias and mahajans (local business people) dominated this market.
Later on Green Revolution resulted from scientific farming and transferred many of the poor villages into business centers. As a result, the demand for agricultural inputs went up especially in terms of wheats and paddies. Better Irrigation facilities, Soil testing, use of high yield variety seeds, Fertilizers, pesticides and deployment of machinery like powder tillers, harvesters, threshers etc. changed the rural scenario. In this context, marketing of agricultural inputs took the importance. Two separate areas of activities had emerged- during this period ‘marketing of agricultural inputs’ and the conventional “Agricultural Marketing”.
Since 1990s, India’s Industrial Sector had gained in strength and maturity. Its contribution to GNP increased substantially. A new service sector had emerged signifying the metamorphosis of agricultural Society into industrial society. Meanwhile, due to the development programmes of the central and state governments, service organizations and socially responsible business groups like Mafatlal, Tatas, Birlas, Goenkas and others, the rural area witnessed an all round socio-economic progress. The Economic Reforms further accelerated the process by introducing competition in the markets. Steadily, the rural market has grown for household consumables and durables.
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Intra-regional trade is trade that takes place between countries within the same region. Inter-regional trade is trade that takes place between countries in different regions. Rural market centers are places where people from rural areas come to buy and sell goods and services. Rural market centers play an important role in the economy of rural areas by providing a place for people to sell their products and buy the goods and services they need.
Benefits of rural market centers include:
- Providing a place for people to sell their products
- Providing a place for people to buy the goods and services they need
- Stimulating the economy of rural areas
- Creating jobs
- Promoting economic development
- Reducing POVERTY
Challenges of rural market centers include:
- Lack of infrastructure
- Lack of access to markets
- Lack of competition
- Lack of government support
- Lack of Education and training
Policies to support rural market centers include:
- Investing in infrastructure
- Providing access to markets
- Promoting competition
- Providing government support
- Investing in education and training
Future of rural market centers:
- Rural market centers are likely to continue to play an important role in the economy of rural areas.
- Rural market centers are likely to become more integrated with the global economy.
- Rural market centers are likely to become more diversified in the products and services they offer.
- Rural market centers are likely to become more technologically advanced.
Intra-regional trade is important because it allows countries to specialize in the production of goods and services in which they have a comparative advantage. This can lead to increased efficiency and productivity, which can benefit all countries involved in the trade. Intra-regional trade can also help to promote economic growth and development.
Inter-regional trade is important because it allows countries to access goods and services that they cannot produce themselves. This can lead to increased consumer choice and satisfaction, and it can also help to promote economic growth and development.
Rural market centers are important because they provide a place for people from rural areas to buy and sell goods and services. This can help to stimulate the economy of rural areas and create jobs. Rural market centers can also help to reduce poverty by providing people with access to goods and services that they would not otherwise have.
There are a number of challenges that rural market centers face. One challenge is the lack of infrastructure. Rural market centers often lack basic infrastructure, such as roads, electricity, and water. This can make it difficult for people to access the market centers and for businesses to operate in them.
Another challenge that rural market centers face is the lack of access to markets. Rural market centers are often located in remote areas, which makes it difficult for them to access larger markets. This can limit the opportunities for businesses in rural market centers to sell their products.
A third challenge that rural market centers face is the lack of competition. Rural market centers often have a limited number of businesses, which can lead to higher prices and lower quality goods and services. This can make it difficult for businesses in rural market centers to compete with businesses in larger markets.
A fourth challenge that rural market centers face is the lack of government support. Rural market centers often receive less government support than urban areas. This can make it difficult for rural market centers to develop and grow.
A fifth challenge that rural market centers face is the lack of education and training. Rural market centers often have a low level of education and training among the Population. This can make it difficult for businesses in rural market centers to find qualified workers.
There are a number of policies that can be used to support rural market centers. One policy is to invest in infrastructure. This can include building roads, electricity, and water systems. Investing in infrastructure can make it easier for people to access rural market centers and for businesses to operate in them.
Another policy that can be used to support rural market centers is to provide access to markets. This can include providing transportation subsidies or building warehouses and distribution centers. Providing access to markets can help businesses in rural market centers to sell their products.
A third policy that can be used to support rural market centers is to promote competition. This can include providing grants or loans to businesses in rural market centers or helping them to form cooperatives. Promoting competition can help to lower prices and improve the quality of goods and services in rural market centers.
A fourth policy that can be used to support rural market centers is to provide government support. This can include providing tax breaks or subsidies to businesses in rural market centers or helping them to obtain loans. Providing government support can help businesses in rural market centers to develop and grow.
A fifth policy that can be used to support rural market centers is to invest in education and training. This can include providing scholarships or training programs for people in rural areas. Investing in education and training can help to improve the skills of the workforce in rural areas and make it easier for businesses to find qualified workers.
Intra-regional trade is trade between countries within the same region. Inter-regional trade is trade between countries in different regions. Rural market centers are places where farmers and other rural residents can buy and sell goods and services.
Here are some frequently asked questions about intra-regional trade and the role of rural market centers:
- What are the benefits of intra-regional trade?
Intra-regional trade can lead to increased economic growth, as countries can specialize in producing the goods and services that they are best at producing. It can also lead to increased competition, which can lower prices and improve quality.
- What are the challenges of intra-regional trade?
One challenge of intra-regional trade is that it can lead to trade deficits, as countries may import more goods and services than they export. Another challenge is that it can lead to job losses in some sectors, as countries may import goods that were previously produced domestically.
- What is the role of rural market centers?
Rural market centers play an important role in the rural economy. They provide a place for farmers and other rural residents to buy and sell goods and services, and they can also provide employment opportunities.
- What are the challenges facing rural market centers?
One challenge facing rural market centers is that they are often located in remote areas, which can make it difficult for them to attract businesses and customers. Another challenge is that they are often competing with larger, more urban markets.
- What are some ways to support rural market centers?
One way to support rural market centers is to provide them with financial assistance. Another way is to invest in infrastructure, such as roads and bridges, that will make it easier for people to access them. Finally, governments can also promote rural market centers by providing marketing and advertising support.
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Which of the following is not a factor that affects intra-regional trade?
(A) The cost of transportation
(B) The level of economic development
(C) The similarity of products produced
(D) The existence of trade barriers -
Which of the following is not a factor that affects inter-regional trade?
(A) The cost of transportation
(B) The level of economic development
(C) The similarity of products produced
(D) The existence of trade agreements -
Which of the following is a benefit of intra-regional trade?
(A) It can lead to increased efficiency and specialization.
(B) It can help to reduce poverty and inequality.
(C) It can promote economic growth.
(D) All of the above. -
Which of the following is a benefit of inter-regional trade?
(A) It can lead to increased efficiency and specialization.
(B) It can help to reduce poverty and inequality.
(C) It can promote economic growth.
(D) All of the above. -
Which of the following is a challenge of intra-regional trade?
(A) It can lead to increased competition.
(B) It can lead to job losses in some sectors.
(C) It can lead to environmental problems.
(D) All of the above. -
Which of the following is a challenge of inter-regional trade?
(A) It can lead to increased competition.
(B) It can lead to job losses in some sectors.
(C) It can lead to environmental problems.
(D) All of the above. -
Which of the following is a rural market center?
(A) A town or village that serves as a commercial center for a surrounding area.
(B) A city that is located in a rural area.
(C) A town or village that is located near a major highway.
(D) A town or village that is located near a major airport. -
Which of the following are the main functions of rural market centers?
(A) To provide goods and services to the surrounding area.
(B) To serve as a center for Trade and Commerce.
(C) To provide employment opportunities for the surrounding area.
(D) All of the above. -
Which of the following are the main challenges facing rural market centers?
(A) Depopulation
(B) Out-Migration
(C) Economic decline
(D) All of the above. -
Which of the following are the main strategies for revitalizing rural market centers?
(A) Attracting new businesses and industries.
(B) Investing in infrastructure and amenities.
(C) Promoting tourism.
(D) All of the above.