Answer to Question #149765 in Macroeconomics for Pearl

Question

Think the manufacturing industry. Elaborate on five ways in which water transport benefits this particular industry.

Answer 1

Manufacturing industries benefit from water transport in disparate ways. Water transport has lower maintenance cost compared to rail and road transport. Moreover, heavy and bulky products from manufacturing industries can be transported cheaply in water transport. Such firms also benefit from foreign trade that is aided by water transport. Additionally, natural calamities, such as floods and heavy rains does not affect water transport, and therefore it ensures continuous transport for manufacturing industries. Although goods are exposed to the perils of water channels, a manufacturing industry would face less risks of goods getting damage, unlike in rail and road transportation.