Why do the movement of goods and services from one place to another require fast and efficient means of transport. Explain with examples.
Reasons for fast and efficient means of transport :
(i.) It is necessary to carry raw materials to production centers and from manufacturing hubs to markets in as little time as possible to achieve efficiency. This is particularly true for perishable goods.
(ii.) It enables goods to reach newer markets and allows people greater accessibility to goods and services. Efficient transport network enables markets to expand to hinterland.
(iii.) Communication opens new avenues of commerce. Modern communication tools like internet allow commercial transactions to take place over large distances, facilitating electronic commerce and banking across countries and contributing to integration of markets.
Examine any three conditions which should be taken care of by multinational companies to set up their production units.
