What is the relationship of transportation to other business functions?

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This is a very good question. Transportation is essential to consider when it comes to business. Let me give you two reasons for this.

If a company is going to ship anything or import anything, then their location must be stragetic to cut down on transportation costs and time. So, for example, a company must want to be close to a port, since transporting goods through ships is the cheapest way. So, location is a major consideration. It is probably the most important consideration.

Second, the price of oil is a very important consideration. If the price of oil is 80 dollars a barrel, then a company might be able to afford to ship things (even far distances). However, if the barrel of oil goes to 140 dollars a barrel, then this will cut into their profits. If they charge more, people might not be willing to buy. Hence, oil, transportation fees, and location are all important considerations.

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What relationship(s) exist between transport and other business functions in a firm?

Transport has a very important role to play in a business that is involved in manufacturing any product. The business needs to acquire raw material that it would use for manufacture. An efficient facility for transportation of raw materials can help the business acquire raw material at the lowest possible cost and choose alternatives that would serve it best.

Transport is also essential to sell the finished products. The business either has to deliver its products to large wholesalers and leave the task of further distribution to them or if it has adequate facilities to transport the products, the wholesaler can be eliminated and products directly delivered to the retailers. Also, efficient transport facilities can help the company benefit from better rates available in markets located away from its production facilities.

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