Page 194 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 8: International Transport System

Transportation is responsible for the development of civilisations from very old times by Notes
meeting travel requirement of people and transport requirement of goods. Such movement has
changed the way people live and travel. In developed and developing nations, a large fraction
of people travel daily for work, shopping and social reasons. But transport also consumes a lot
of resources like time, fuel, materials and land.

8.5.1 Economic Role of Transportation

Economics involves production, distribution and consumption of goods and services. People
depend upon the natural resources to satisfy the needs of life but due to non-uniform surface of
earth and due to difference in local resources, there is a lot of difference in standard of living in
different societies. So there is an immense requirement of transport of resources from one
particular society to other. These resources can range from material things to knowledge and
skills like movement of doctors and technicians to the places where there is need of them.

Place, Time, Quality and Utility of Goods

An example is given to evaluate the relationship between place, time and cost of a particular
commodity. If a commodity is produced at point A and wanted by people of another community
at any point B, distant x from A; then the price of the commodity is dependent on the distance
between two centres and the system of transportation between two points. With improved
system, the commodity will be made less costly at B.

Changes in Location of Activities

The reduction of cost of transport does not have the same effect on all locations. Let at any point
B, the commodity is to be consumed. This product is supplied by two stations A and K which are
at two different distances from B. Let at present the commodity is supplied by A since it is at a
lesser distance but afterwards due to improvement in road network between B and K, the point
K becomes the supply point of product.

8.5.2 Social Role of Transportation

Transportation has always played an important role in influencing the formation of urban
societies. Although other facilities like availability of food and water played a major role, the
contribution of transportation can be seen clearly from the formation, size and pattern, and the
development of societies, especially urban centres.

Formation of Settlements

From the beginning of civilization, the man is living in settlements which existed near banks of
major river junctions, a port or an intersection of trade routes. Cities like New York, Mumbai
and Moscow are good examples.

Size and Pattern of Settlements

The initial settlements were relatively small developments but with due course of time, they
grew in population and developed into big cities and major trade centres. The size of settlements
is not only limited by the size of the area by which the settlement can obtain food and other
necessities, but also by considerations of personal travels especially the journey to and from
work. The increased speed of transport and reduction in the cost of transport has resulted in
variety of spatial patterns.

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