• Smuggling: Some people sneak in goods from other countries and at the same time export ZIMBABWE’s products to such countries through the black market. Such trade is detrimental to the economic growth of the country because such traders avoid paying taxes.

  • Nature of ZIMBABWE’s imports and the unfavourable balance of trade: Most of the imports are heavy industrial materials and finished products. These products are expensive as compared to ZIMBABWE’s exports thus results in a large deficit balance of payment.
  • Value of ZIMBABWE Exports: ZIMBABWE’s exports are mainly based on processed raw materials. Minerals and processed agricultural materials from ZIMBABWE are generally bulky and of low value. Thus the total production and export cost is not commensurate with the profit accrued from such sales.

  • Poor trade Pattern: ZIMBABWE’s patterns of trade still follows the line of flow established by her former colonizer Britain being mainly a supplier of raw materials; the developing countries provides the manufactured goods that ZIMBABWE requires so they form better trading partners.
  • Inadequate transport and communication facilities .The transport and communication network not well developed between ZIMBABWE and other African countries. This affects the flow of goods to and from these countries.
  • Trade barriers. The imposition of quotas regulates the supply from each country to avoid any economic glut, which has negative effects on ZIMBABWE that depends heavily on particular commodities for export. .
  • Overreliance on agricultural products. Given the fact that ZIMBABWE’s trade items are mainly agricultural, they are vulnerable to climatic changes, pests and diseases. The fact that most of the other African countries also produce agricultural goods and other primary products the demand for ZIMBABWE’s goods among the neighbouring states is reduced.
  • High charges. Traders are charged high fees in form of trading license in order for them to carry out their businesses. High fees make the traders to earn little profits from the sale of their goods.
  • Poverty among the people. Majority of ZIMBABWEANS are poor making them offer a very small internal market. Some cannot afford the very basic needs in their homes.

  • Insecurity. Sometimes traders are attacked by thugs who steal their goods or take away the money earned. Some businessmen are even killed in the attacks.
  • Scarcity of goods. There are times in the remote areas of ZIMBABWE that the goods needed by people are not available in the markets or shops. Then scarcity makes such goods expensive.
  • Inadequate capital. Most traders engage in small retail businesses because they lack adequate finances to expand their activities.


9 Factors to consider when establishing a retail shop

Retail is a word that means to cut again

retail trade is the buying of goods in bulk and breaking the bulk to suit the needs of consumers

The Functions of a Retailer are to

  • break bulk
  • provide a variety of goods
  • credit to trusted customers
  • offer delivery on some goods
  • pass information to wholesalers
  • give advice to consumers
  • package goods before sale
  • provide a local supply of goods
  • display goods in retail shops
  • provide presales and after sales service

Factors to consider when establishing a retail shop

  • Capital
  • Location of the retail shop
  • The business experience of the owner
  • Goods for sale
  • Method of selling
  • Name of the shop
  • Right quantities of goods should be stocked
  • How to inform the customers about the shop


9 Importance of warehouses

The warehouse is a large building in which goods, raw materials, or commodities are stored.

9 Importance of warehouses
Tinhay : Lifton Mill Warehouse by Lewis Clarke is licensed under CC-BY-SA 2.0

Importance of Warehouses

  • Protection of goods against climatic conditions.
  • Protection from theft.
  • Producers can store raw materials for future production.
  • The surplus created can be stored before being finally sold.
  • Shortages in the market can be avoided.
  • Price fluctuations can be minimized.
  • International trade is not possible without warehousing.
  • Traders can keep their cargos in bonded warehouses before they pay the duty.

  • Plays an important role when demand for products or the time of production is seasonal.
  • Provides a place for the display of goods.


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