Role of trading corporation
The trading corporation is a Govt. organization serving an important role in case of foreign trade of a country. This type of organization is present in many countries of the world to support and improve foreign trade of that country.
The trading corporation plays important role in the economic development of developing countries like; Bangladesh, Afghanistan, Laos etc., by importing necessary elements according to the increasing demands. The role of trading corporation in the economic development of developing countries is described briefly as follows-
Consumer Goods Import
Since the products produced in this country cannot meet the large demand. TC imports various consumer goods to meet this demand. It imports under the STA (Special Treading Arrangement) and thus reduces the cost and sales them at low price to the people.
Industrial Raw Material Import
In developing countries, like, Bangladesh except for the jute industry, most of raw materials are needed to import. TC imports these raw materials mainly for Govt. industries but also distributed to the private factories.
Storing Goods for disaster
Developing countries, like, Bangladesh suffers from many types of natural calamities like flood, cyclone, storms, excessive rain, draught etc. During these bad times a lot of products are necessary. The TC imports different essential products and store them for using during those times. The TC provides these products at a very low price after the disaster.
Coordination of demand and supply
The TCB helps in keeping the price level of the daily necessities stable by supplying products according to the market demand. If there is less supply in comparison to the demand of products in the market the price becomes too high. When the price becomes too high for the citizen, possibility of famine arises. The TC helps in keeping the balance between supply and demand and reduces the bin of chance from these types of disasters.
Supplying Goods at a fair price
The TC is a government organization. So, it has an advantage to import goods at a lower price. Since, it is a government organization its main intention is social welfare. So, it supplies goods to people at a lower price. It bears huge benefit to the general citizens of the country products to gain extra profit. This raises the price to a very harmful extent. Besides, some monopoly business companies also raise their price to an extreme extent. By importing the products TC creates a Govt. Control on the prices of the products.
Strengthening the Defense System
The trading corporation helps in the defense system by importing arms and ammunition for the armies.
Formalities of Trade policy
The trading corporation helps the Government in formulating trade policies by giving various advices.
From all these discussions it can be concluded that the TC plays a very important role in my or economic development of the country. The role of TC shows the role of the entire public sectors is the development of the foreign trade.