What is Transportation in Business Studies -Transportation is an important part of business and commerce. Transportation means conveyance of goods and passengers from one place to another. Effective transportation is inevitable for economic progress. It is the lifeline of commerce. Development of transportation facilities regulates the social, political and economic growth of a country. Without the network of organized means of transportation, production of the entire economy of a country will be paralyzed.
What is Transportation in Business Studies
The growth of both home trade and foreign trade and dependent on the development of an efficient transportation system. Transportation performs the entire work of dispensing of goods. It adds place utility to the things produced by bringing them from place of production to that of consumption.
Raw materials are produced or extracted from different regions of the world or that of the world or of a country. Sometimes, it is possible that agro based or specific raw materials based industry is established near the origin of certain raw materials. But industry is usually established at suitable place near a market, a captain market or a port or town with modern facilities. A number of factors determine the localization of industry.
So raw materials need to be carried to the site of the industry. Which highlight the necessity of transportation? Consumable cereals also need to be carried to the market or consumers or to the place of processor through transport. The finished goods should also be carried through transport to the customers or consumers. On the hand, in the context of modern global economy, cost efficiency, cost control or cost reduction is an important factor and goods are transported for processing in a distant place to have lower cost. Such as Korean cloth is used in the garments factory of Bangladesh to made garments for customers in the USA and other rich countries. All these contribute to the development of more transportation and transportations economics is an important is an issue in Economics of Trade of today.
Transportation of goods is thought more commercially than that of passenger. But human movement is a historical fact. Today individuals are more mobile. For education, employment and tourism men travel to the every nook and corner of the world and also of the country. So passenger transportation is also a viable business sector, as a few individuals can maintain personal transportation on a limited local area. For local and international travel, today, people depend on commercial transportation. Thus, public transportation is a lucrative area of investment and business.
Transportation constitutes some total of activities that are undertaken to remove place hindrance. There are two extremes entities (opposite points)- one is producer and another is consumer. Goods are produced at any place and are required for consumption at different places. So, there is a large gap between producers and consumers, which is known as ‘place hindrance of commerce’. Transportation adds place utility to the goods produced by moving those from place of production to that of consumption. For example, our garments products are used by farthest countries like the USA, Canada, EU, and other countries; and it is possible with the help of transportation.