What determines transportation cost efficiency?

• A. General System of Preferences
• B. AfCFTA
• C. Value-to-Weight Ratio
• D. Coordination

Answer: (C)

Transportation cost efficiency comes down to how much value you carry for each unit of weight you move. A high value-to-weight ratio means you’re getting a lot of revenue from a small, light shipment, so the transport cost per dollar of value is low and the move is economical. This ratio helps you decide not only which mode to use but also how to route and consolidate shipments: light, high-value goods (like electronics or jewelry) can justify faster, more expensive options, while bulky, low-value items (like bulk minerals) benefit from cheaper, slower, larger-scale transport because the value gained per kilogram is small.

The other options influence trade policies or coordination, which affect overall efficiency in different ways, but they don’t determine the intrinsic cost efficiency of moving goods. The value-to-weight ratio is the primary measure that dictates how cost-efficient a shipment will be.