Fig. 2.1 shows stages of a chain of distribution for tea. [Figure 2.1] Use Fig. 2.1 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2024). The mark or mark type is shown in brackets.

1. [1] Tea grower / first stage / first box
2. [1] Customer / consumer / buyer
3. [2] Brokers bring/interacts buyers and sellers together / helps to find customers (1) factors sell goods (1) on behalf of owners/principals / do not buy goods for their principals (1)
4. [2] Brokers are not responsible for delivery of goods (1) factors do carry out delivery (1)
5. [2] Brokers do not have possession of goods (1) factors have possession of goods / deliver sold goods directly to buyers (1)
6. [2] Brokers cannot arrange sign contracts in their own names / must give the names of the people that they are working for/principals (1) factors only deal with goods as if they were owners / can sign/sell in their own name / may provide credit (1)
7. [2] Brokers gain commission for their services (1) factor earns profit / extra commission as a del credere agent (1)
8. [2] Brokers do not deal with payments (1) factor guarantees/ensures payment (1)
9. [2] Stores dutiable goods
10. [2] Goods are kept/stored until duty is paid
11. [2] Goods cannot be removed until duties are paid
12. [2] When duty is paid, a customs warrant is completed
13. [2] Controlled/supervised by Customs and Excise / maintained by customs office
14. [2] May be owned by the state/government/privately owned
15. [2] Located near ports of entry/borders
16. [2] Goods can be processed/bottled/blended/packed/repackaged/branded /graded
17. [2] Goods can be withdrawn in separate groups /small quantities
18. [2] Goods can be sold in bond
19. [2] Goods for re-export/entrepot trade can be kept
20. [2] Can store illegal goods
21. [6] A distribution channel is the chain of businesses or intermediaries through which goods or services pass until they reach the consumer. It can include wholesalers, retailers, distributors, importers, exporters and the internet. Transport can be by road, rail, air or sea.
22. [6] Transport enables raw materials to be moved from extraction to where they can be processed.
23. [6] Manufactured (finished) goods are moved from factories to wholesalers/retailers/consumers preventing shortage/surplus of goods and higher/lower prices by using transport to supply markets on time.
24. [6] Goods can be delivered to the door allowing businesses to have personal contact to increase sales.
25. [6] Transport enables customers to have goods when they demand them.
26. [6] Transport also enables goods to be imported/exported so allowing markets to expand and global markets/customers to be satisfied.
27. [6] Retailers can advertise on side of vans so increasing demand for their goods.
28. [6] Evaluation: Transportation is very important in the chain of distribution because it provides the essential service of linking suppliers and customers wherever they are in the world. Transport supports the interdependence of countries in the move towards globalisation, which can help a country's economy to grow which might also be considered very important.