Money and Banking

Семестр

Wholesaling

Retailing

Семестр

Второй год обучения

The consumer goods industry is concerned with producing goods bought and used by the people, e.g. foods, furniture, clothes, domestic appliances, etc.

Consumer goods may be perishables, consumer durables or non-durables.

The capital goods industry is concerned with manufacturing durables, e.g. machinery, equipment and vehicles.

Commerce is concerned with the distribution and exchange of goods and services.

Distribution covers getting goods from the producer to the consumer. Exchange covers the buying and selling of goods and services, goods are exchanged for money and money is exchanged for goods. Between the producer and consumer there may be many layers of buyers and sellers.

Manufacturers buy raw materials from commodity markets and sell in bulk their products to wholesalers. To wholesale means to sell in large quantities. To sell in small quantities means to retail.

Very primitive trade may be the exchange of goods for other goods. It is called barter. The difficulties of barter do not allow for trade to develop widely.

What is needed for trade to develop is something that people are prepared to accept in exchange for anything. The value of goods was first measured by shells, herds, metal pieces and other things. Finally metal money proved most suitable. Thus money was used as measure of value.

Today each country has its own money, or currency, which is acceptable inside its frontiers, but not outside.

This is the way money goes round: 1) People earn wages for producing goods and services. 2) Their wages are spent in shops, etc. on goods and services. 3) Shops bank their profits. 4) Banks lend money to industries.

(1374 t.un.)

The retailer performs the last stage of the production process for it is he who puts the goods in the hands of the actual customer. His work is “to have the right goods in the right place at a right time”.

There are four types of retail institutions: 1)specialty stores, 2) supermarkets, 3) general merchandise stores, 4) nonstore retailing.

Often specialty stores sell one type of product, such as clothing, jewelry, furniture, books. These stores, having a better feeling of their market, compete against giant department stores. They can adjust more quickly to market conditions.

Big supermarkets are usually well located. All the goods are arranged on trays and shelves. All the prices are clearly marked. The goods are ready-weighed and beautifully packed. There you can find everything you need. The prices are responsible.

General merchandise stores (GMS) carry a wide variety of products. There are three types of GMS, a) department stores, b) discount stores, c) hypermarkets. Big department stores started in America more than 50 years ago, and then the idea was brought to European countries. These stores are wonderful places. People can do all their shopping under one roof. All the things for sale are displayed so that they can be easily seen, and the customers walk around and choose what they want.

The store is divided into departments: women’s clothes, men’s clothes, shoes, toys, sport goods, china and glass, etc. There may be a restaurant with an orchestra and sometimes a tea-room as well. You will also find a room where you can rest if you are tired. There’s an office where you can book seats for the theatre or arrange to travel anywhere in the world.

Low price is a major attraction of the discount stores. These stores sell the most popular items, colours and sizes. The stores keep long hours and usually open on Sundays. Hypermarket is a type of discount store that was developed in Germany. They are very large stores with low-price and high-turnover products. Hypermarkets achieve cost savings by simplifying their unpacking and display.

There are three major types of nonstore retailing: a) vending machines, b) door-to-door sales, and c) catalogue sales. (1830 t.un.)

NOTES: to book – заказывать; discount store – розничный магазин, торгующий по сниженным ценам; door-to-door sales – продажа через торговых агентов на дому; general merchandise store – магазин со смешанным товаром; hypermarket – гигантский супермаркет; non-store retailing – продажа помимо магазина; specialty store – специализированный магазин розничной торговли; turnover – оборот, товарооборот; vending machine – торговый автомат

Wholesalers e the institutions which stand between the manufacturer and the retailer. The wholesaler buys goods in bulk from producers and sells them in small quantities to retailers. In doing so he helps to the production process. If you had an intention to be a successful manufacturer, you would make high quality products at a reasonable price for selected markets. If you intended to be a wholesaler, you would learn how to serve the market.

Wholesaler economizes the distribution. The most important function of a wholesaler is to contact manufacturers and potential customers.

Wholesalers are used for information and advice. Suggestions which customers make to the retailer are passed to the wholesaler who conveys them to the manufacturer. Thus the latter can improve his product.

The wholesaler keeps stocks. Shoppers like to obtain goods immediately. This requires stocks. Often, however, neither the producer nor the retailer has extensive storage facilities and responsibility falls on the wholesaler.

The wholesaler cannot rely on retailers visiting him to see goods and place orders. Representatives, or travelers, go out to visit retailers with catalogues, price lists and order forms. They also carry samples.

Moreover he arranges imports from abroad. Foreign manufacturers can rarely bother to ship small parcels to individual retailers abroad. They prefer to deal with a wholesaler, an import merchant with established trade connections.

The wholesaler normally allows a certain period of credit. Not to delay payment, cash discount is allowed within a month. A trade or quantity discount, which increases with the amount of goods ordered, encourages retailers to place large orders.

Wholesalers may be classified into three groups: manufacturer-owned operations, merchant wholesalers and merchandize agents and brokers. Manufacturers can establish their own wholesaling office or branch, the latter providing more services to its customers. Depending on the industry or geographical location merchant-wholesalers are called distributors, jobbers, or dealers. Among merchandize agents there are selling agents, brokers, commission agents and action companies. They are all compensated by either a commission or a brokerage fee. (1925 t.un.)

NOTES: jobber – человек, работающий сдельно, посредник; merchant-wholesaler- оптовик; merchandize agent – торговый агент

Money is important to the operation of the economy at two levels. First, it is the means of financing the purchases of goods and services and of storing values. Second, the quantity of money in the economy helps to determine total spending and the general level of price.

Almost every society now has a money economy based on coins and paper bills. However, this has not always been true. In primitive societies a system of barter was used. Barter was a system of direct exchange of goods. Somebody could exchange a sheep, for example, for anything in the market-place that they considered to be of equal value. Barter, however, was a very unsatisfactory system because people’s needs seldom coincided. People needed a more practical system of exchange, and various money systems developed, based on goods such as cattle, grain, shells, salt, etc. Precious metals gradually took over, because, when made into coins, they were portable, durable and divisible into larger and smaller units of value.

A coin is a piece of metal, usually discshaped, which bears lettering, designs or numbers showing its value.

Most governments now issue paper money in the form of bills, which are really “Promises to pay”. Paper money or “bank-notes” are easier to handle and much more convenient in the modern world. Checks and credit cards are being used increasingly.

At the end of the U. K. Banking system is the Bank of England, which is also known as the Central Bank. It is also the Government’s Bank and holds all surpluses of the various government departments. (1306 t.un.)

Дата добавления: 2017-02-01