Business Studies

Match the problems with international trade in list 1 with their likely impact in list 2.

Risk in transit Dispatch and receipt of goods takes a longer time
Investment for longer period Exposure to perils of the sea
Distance Buyers and sellers rarely meet one another
Difficulty in transportation Capital remains locked up

ANSWER

1,7,10,12


SOLUTION
1) Risk in transit : Risk involved due transporting goods from due to accidents and pirates etc.
2) Investment for longer period  : Capital gets blocked or locked up for longer period as it is invesment in capital assets.
3)Distance : Due to long distance of far distance gap between the buyer and seller. The buyer and seller rarely meet each other.
4) Diffculty in transportation  :  Dispatch and reciept of goods takes a longer time as it may because of unavailability of transportation, no reliable transport etc which may delay the dispatch of goods 
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