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Asked by Rishu Last Modified
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Transport is necessary to provide for the physical movement of people and goods from where they are abundant (such as plantations, mines, farms) to the factory where they are needed as raw materials for the manufacture of finished goods, or where they are processed. It is again necessary to send these processed or finished goods to their markets, and ultimately, to the final consumers, both domestic and foreign. A fast, cheap and efficient transport system has led to the extension of both local and overseas markets. This has enabled producers to specialize and engage in large-scale production with its related cost savings. It has also led to different regions specializing in those goods in which they find comparative advantage in producing on a commercial basis. Trade between different regions within and outside the country expanded. Consumers all over the world can now buy goods produced in far-off countries. Thus, they have greater choice. Standards of living have improved. The main means of transport in home trade are by road, rail, rivers and canals whilst in foreign trade they are by air and sea.
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