The mobility of both goods and people is fundamental in increasing economic development in areas such as manufacturing, the supply of energy, and distribution of products. Modern firms are continually using commercial transport since it is the reliable and fast means of distributing their commodities to customers in various geographical locations (Transport Geography n.p). A complete transport system is composed of skilled personnel, such as drivers, infrastructure, corporations, trading nations, and modes and terminal
Human population is constantly growing in different parts particularly in the urban areas. As a result the dense settlements would not only exceed the available infrastructure such as road but also promote the development of mass transit such as trains and planes. Notably, many developed countries including France, Russia, Germany and the United States have over the years promoted the use of mass transportation method to limit congestion in the roads. With this trend, the use of private modes is slowly decreasing and will be minimal in the long run to pave way for mass transit.
The government has a huge role in regulating the commercial transport services to enable the attainment of productive, competitive levels among companies. Primarily, through its involvement, small transportation firms not only increase their market share but also limit the formation of monopoly power. Additionally, the regulation would enable the implementation of consumer protection initiatives that would restrict the distribution of harmful foods or medications. It will also limit the overloading of commercial vehicles which may lead to the destruction of public roads in the long run.
Most companies that offer commercial transportation services charge more for moving live animals and rare chemicals. Government regulation in this area limits the exploitation of companies and standardizes the overall cost. (Akarca n.p) Implementing government authority and policies will restrict the development of markets that not only promote monopoly but also limit the level of diversity in the market. Undoubtedly, government regulation is a vital aspect of a thriving market. By increasing its control and power over some of the critical sectors, such as transport, the government would promote proper relations with their trading partners.
Akarca, Onur. “Should I buy CIF Or FOB ?”. More Than Shipping, 2018. http://www.morethanshipping.com/should-i-buy-cif-or-fob/. Accessed 27 July 2018.
Transport Geography. “The Geography of transport systems.” The Geography Of Transport Systems, 2018. https://transportgeography.org. Accessed 27 July 2018.