a) What is transportation by pipeline? b) Explain five benefits of transport by air. c) State four factors to be considered by a producer in choosing an eff...

Answer Details

(a) What is transportation by pipeline?

Transportation by pipeline is the movement of liquids and gases, such as crude oil, refined petroleum products, natural gas and water, through a network of connected pipes from the point of production or supply to where they are needed. It is a continuous, largely automatic means of transport used mainly for fluids over long distances.

(b) Five benefits of transport by air

1. Speed. Air transport is the fastest means of transport, ideal for moving goods and people over long distances quickly.
2. Suitable for perishable and urgent goods. It is best for carrying perishables (flowers, fish, fruits) and urgent items such as medicine and mail.
3. Reaches distant and inaccessible areas. Aircraft can cross oceans, mountains and deserts that are difficult for road or rail.
4. Carries valuable and light goods economically. It is well suited to high-value, low-bulk goods such as jewellery, documents and electronics.
5. Reduced handling and quicker delivery. Fast transit lowers the risk of damage, deterioration and pilferage and speeds up trade.

(Also acceptable: it saves time and reduces the need for large warehouse stocks.)

(c) Four factors in choosing an effective channel of distribution

1. Nature of the product. Perishable, fragile or technical goods need short, direct channels, while durable goods can use longer channels.
2. The market. A widely scattered market needs longer channels with many middlemen, while a concentrated market can use direct selling.
3. Cost of distribution. The producer chooses the channel that delivers goods at the lowest reasonable cost.
4. Nature and size of the firm. A large firm with enough resources may sell directly, while a small firm relies on wholesalers and retailers.

(Also acceptable: degree of control desired, and the volume of goods to be sold.)