Explain direct trade by giving its three advantages.

Direct trade refers to the trade under which the producers directly sell their goods to the consumers. There is no role of a middlemen in this type of a trade. 

The following are some of the advantages of direct trade:

i. Sometimes the middlemen's indulge in undesirable practices like hoarding to create scarcity of goods. Elimination of middlemen in direct trade ensures that such artificial scarcities are not created.

ii. Trade involves distribution of profits between the producer and the middlemen. However, under direct trade the producer gets all the profits as there is no middlemen involved in the distribution of goods. 

iii. Under direct trade, sales is done for cash. Thus, there is no risk of bad debts. In addition to this, the funds of the producers does not get blocked in the transaction. 

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