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Tea is mainly produced in Assam, while cotton in Gujarat & Maharashtra but they
are required for consumption in different parts of the country. How can this hindrance
of place be removed? Also under what business activity will it be categorised?
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Tea is mainly produced in Assam, while cotton in Gujarat & Maharashtra...


Removing the hindrance of place in the distribution of tea and cotton


  1. Interstate trade agreements:
    One way to remove the hindrance of place in the distribution of tea and cotton is to establish interstate trade agreements. These agreements can facilitate the smooth movement of goods from the production regions to the consumption regions without any barriers.


  2. Establishing distribution networks:
    Another approach is to establish efficient distribution networks that can transport tea and cotton from Assam, Gujarat, and Maharashtra to different parts of the country. This can involve setting up warehouses, transportation facilities, and retail outlets in strategic locations.


  3. Utilizing e-commerce platforms:
    E-commerce platforms can also be used to bridge the gap between the production and consumption regions. By selling tea and cotton online, producers can reach a wider customer base across the country.




Categorization under business activity


  1. Trading:
    The distribution of tea and cotton from Assam, Gujarat, and Maharashtra to different parts of the country can be categorized under the trading business activity. This involves buying goods from producers and selling them to consumers or retailers.


  2. Retailing:
    The establishment of retail outlets in various regions for the sale of tea and cotton can fall under the retailing business activity. This involves selling goods directly to consumers for their personal use.


  3. E-commerce:
    Using e-commerce platforms for selling tea and cotton can be categorized under the e-commerce business activity. This involves conducting business transactions online through websites or mobile applications.

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Read the following passage and answer the questions that follow: At the micro level, every economy faces three central problems, i.e., what to produce, how to produce and for whom to produce.What to Produce : The problem of ‘what to produce’ arises as the producers have limited resources. In an economy because of scarcity of resources, producers are unable to produce everything in bulk but they will have to make a choice as to which one is important as a whole so that limited resources can be rationally managed. Problem of ‘what to produce’ involves two-fold decisions : the kind of goods to be produced and the quantity of goods to be produced.How to Produce : It is concerned with how to organise production. This problem is related to the choice of technique of production. It arises due to the availability of various techniques for the production of a commodity such as Labour– Intensive Technique and Capital–Intensive Technique.For Whom to Produce : The problem of ‘for whom to produce’ is the problem of distribution of produced goods and services. At the micro level, the decision relates to different sets of buyers in the economy. In an economy, producers would obviously be inclined to produce more for the rich buyers to maximise their profits but, the government also intervenes to regulate the use of resources, so that enough production is done for the poorer sections of the society also.Q. The problem of ..................... is the problem of distribution of produced goods and services.

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Tea is mainly produced in Assam, while cotton in Gujarat & Maharashtra but they are required for consumption in different parts of the country. How can this hindrance of place be removed? Also under what business activity will it be categorised?
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