chapter  8
16 Pages

THE ADVANTAGES OF CAPITAL AND SIZE

The most obvious factor responsible for the heavy capital requirements is the long period over which merchants have to finance stocks in many branches of tropical trade. In the import trade there is often a long time between the placing of orders and the ultimate disposal of the merchandise, a considerable period may also elapse between the purchase of produce up-country and its eventual sale. Although bank credit is sometimes available for some of these operations, the capital requirements of the merchants are heavy.