Importance Of Transportation
Transportation helps in the creation of new markets. Transportation plays a very vital role in the economic development of the country. The importance of transportation is as follows:
1. Growth of industries
Due to transportation product requires quick marketing and timely arrival in the market for the consumer. These include fish, perishable goods and vegetables, etc, which leads to growth in that industry.
2. Creation of place utility
Transport creates place utility. Due to geographical and climatic factors, industries are located in places that are far away from customers, but due to transport goods are available for customers in the near market.
3. Creation of time utility
Transport creates time utility, because goods are reached to ultimate customers on time due to speedy transport.
4. Stable prices
Transport helps in the stabilization of prices. Transportation influences the prices of goods by moving goods from surplus to deficit areas; it helps to balance the supply and demand factors.
Transport enables the customer to enjoy the benefits of goods that are not produced locally, which leads to improving the standard of living.
6. Competition increased
Due to transport level of competition increases. Goods are available and prices reduce. The advantages of large scale-production are only possible through transportation.
7. Mobility of factors of production
Transport enables the mobility of Labour and capital. People move from one place to other in search of job. Capital (Machinery) is transported from other countries for production purposes through transport.
8. Bring countries closer
No country is self-sufficient. Every country has to depend upon another country. Transportation brings countries closer. Goods are easily imported and exported according to requirements.
9. Employment opportunities
Transport contributes to economic development through the creation of employment opportunities for people. It creates both direct and indirect jobs.
10. Agriculture development
Transport has helped in the development of the agriculture sector. The business of agricultural products has grown to such a large extent only due to the efficient means of transport.
11. Industrial Development
Transport facilitates the industrial development of a country. It helps the growth of industries by making available various factors of production. Mobility of factors of production is only possible through transport. Read more
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