buying and selling

Question 1

what is globalization?

Answer 1

growing integration of the world’s economy

Question 2

what are the sources of buying?

Answer 2

homebuying
international buying
indirect buying
direct buying
mail order

Question 3

what is homebuying?

Answer 3

buying and selling goods with the aim of making profits among people of the same country

Question 4

3 advantages of homebuying

Answer 4

communication is easier
costs can be low
goods can be delivered quickly

Question 5

3 disadvantages of homebuying

Answer 5

limited choice
quality can be low
higher costs for buyers

Question 6

what is international buying?

Answer 6

buying items from international markets

Question 7

3 advantages of international buying

Answer 7

cheaper supplies from low cost regions
good quality products can be bought
improved choices for buyers

Question 8

3 disadvantages of international buying

Answer 8

difficulty in communication
Technical barriers
Cultural barriers

Question 9

what is indirect buying?

Answer 9

the purchase of goods indirectly from intermediaries

Question 10

3 advantages of indirect buying

Answer 10

can order in convenient quantities
deliver goods
different variables available

Question 11

3 disadvantages of indirect buying

Answer 11

cannot guarantee on quality
handling cost is applicable
limited quantities may be available

Question 12

what is direct buying?

Answer 12

purchase of goods directly from manufacturers

Question 13

3 advantages of direct buying

Answer 13

no handling fee
they may have high stock levels
fair prices

Question 14

3 disadvantages of direct buying

Answer 14

need to buy in large quantities
need large storage capacity
delivery charges applicable

Question 15

what is mail order?

Answer 15

buying of goods and services by mail delivery system

Question 16

3 advantages of mail order

Answer 16

cheaper
quick delivery
greater variety of goods

Question 17

3 disadvantages of mail order

Answer 17

deliveries can get delayed
Inconvenient when returning goods
customers pay at time of delivery

Question 18

what is outsourcing?

Answer 18

the process of arranging somebody outside the business to do workings of the business

Question 19

3 advantages of outsourcing

Answer 19

cost reduction & saving
need to focus on few things
access to better management skills

Question 20

3 disadvantages of outsourcing

Answer 20

loss of control
less motivation for workers
need greater coordination

Question 21

Cost associated with buying

Answer 21

Transport cost
Transaction cost
Administration cost
Environmental cost
Research cost
staff cost

Question 21

cost associated with selling

Answer 21

staff cost
Payment process
stolen inventory
damaged inventory
distribution cost
packaging cost
advertising and promotion cost