Define the working of first barrier of exchange in intermediaries.

The primary barrier for smooth exchange results by the fact which sources of supply and centres for demand are located at extensively dispersed location. Because sources of supply and centres of demand are dispersed geographically during the country, there arises the requirement for physical movement. This require for physical movement is further complicated through the fact that consumers, at changing distance from the manufacturers, needs intermittently only small quantities of product which though transported to individual consumers would make the transportation cost productive. That problem is taken as to spatial discrepancy between production and consumption.