Internal Trade :
Internal trade is done within the geographical boundaries of a country. As an example, trade done amongst the traders of Delhi, Mumbai, Chennai, Kanpur and Amritsar etc. is called Internal Trade.
Types of Internal Trade :
(i) Wholesale Trade : It involves purchase and sale of goods in wholesale quantities. Large quantities of goods purchased from manufacturer are sold in small quantities to various retailers.
(ii) Retail : It involves the sale of goods to consumers by the retailers. A retailer buys the goods from a wholesaler and sells them to customers in their required quantities. It is a link between a wholesaler and consumer. Different types of goods are available at a retailer shop so that a customer could buy the goods of his own choice.
Internal trade can also be classified as : (a) Local Trade, (b) State Trade, (c) Inter-State Trade.
External Trade :
Whenever trade occurs between two countries, it is known as external trade. In foreign trade, both buyer and seller live in different countries. If Reliance Ltd. sells Polyester Yarn to a French firm or L&T Ltd. purchases a heavy machine from a Swiss firm, these would classified as external trade.
Types of External Trade :
1. Import Trade : When the trader of one country buys the goods from foreign countries, it is known as import trade for the trader who buys the goods.
2. Export Trade : When the trader of a country sells goods to a foreign country, it is known as export trade for the trade who sells the goods e.g., if a tea firm of Darjeeling sells tea to U.K., it is export trade.
3. Entrepot Trade : The goods imported from one country for export to another country, is known as entrepot trade. It is also known as Re-export. It is done when a country does not have her own seaport or not having good political relations with other countries or no direct access to those countries from where goods are to be imported.
Gaurav Seth 3 years, 6 months ago
Internal Trade :
Internal trade is done within the geographical boundaries of a country. As an example, trade done amongst the traders of Delhi, Mumbai, Chennai, Kanpur and Amritsar etc. is called Internal Trade.
Types of Internal Trade :
(i) Wholesale Trade : It involves purchase and sale of goods in wholesale quantities. Large quantities of goods purchased from manufacturer are sold in small quantities to various retailers.
(ii) Retail : It involves the sale of goods to consumers by the retailers. A retailer buys the goods from a wholesaler and sells them to customers in their required quantities. It is a link between a wholesaler and consumer. Different types of goods are available at a retailer shop so that a customer could buy the goods of his own choice.
Internal trade can also be classified as : (a) Local Trade, (b) State Trade, (c) Inter-State Trade.
External Trade :
Whenever trade occurs between two countries, it is known as external trade. In foreign trade, both buyer and seller live in different countries. If Reliance Ltd. sells Polyester Yarn to a French firm or L&T Ltd. purchases a heavy machine from a Swiss firm, these would classified as external trade.
Types of External Trade :
1. Import Trade : When the trader of one country buys the goods from foreign countries, it is known as import trade for the trader who buys the goods.
2. Export Trade : When the trader of a country sells goods to a foreign country, it is known as export trade for the trade who sells the goods e.g., if a tea firm of Darjeeling sells tea to U.K., it is export trade.
3. Entrepot Trade : The goods imported from one country for export to another country, is known as entrepot trade. It is also known as Re-export. It is done when a country does not have her own seaport or not having good political relations with other countries or no direct access to those countries from where goods are to be imported.
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