How do transportation costs factor in trade? What has happened to those transportation costs in recent years? Discuss the consequences of this trend for global trade patterns?
Answer for first part of the question
How do trasportaion cost in trade ?
Answer.
Transportation cost in trade means cost of transportation of a a internationally traded commodity from origin point to a destination point.
Mode of transportaion
1. Land tranport
2. Ocean transport
3. Air transport
Answer for second part of the question.
What has happened to those trasportation costs in recent years ?
Answer
This answer is based on the online trading multy national companies
Recent years online trading multy national companies are sell the commodity without transportation cost.
Answer for third part of the question
Transportation cost free trade helps to increase the trade volume . It help the consumers to buy the commodities at low price.
How do transportation costs factor in trade? What has happened to those transportation costs in recent...