What do you understand by internal …

Internal Trade When buying and selling of goods and services takes place within the geographical limits of a country. It is known as internal trade.

Types of Internal Trade Internal trade can be classified into two categories.

(i) Wholesale Trade It refers to the trade in which goods are sold in large quantities. The person who carries on wholesale trade is known as wholesaler.

A wholesaler provides many valuable services to the manufacturer as well as the retailer.

(a) Services to Manufacturer

• Facilitating large scale production
• Bearing risk
• Financial assistance
• Expert advice
• Help in marketing function
• Facilitate production continuity
• Storage

(b) Services to Retailer

• Availability of goods
• Marketing support
• Grant of credit
• Specialised knowledge
• Risk sharing

(ii) Retail Trade Retail trade refers to sale of goods in small lots to the final consumers. A retailer buys goods from a wholesaler and sells them to the consumer.

(a) Services to Consumers

• Ready or quick supply
• Wide variety
• Guiding consumers
• Demonstration and after sale services
• Home delivery
• Convenient location
• Credit facility

(b) Services to Wholesaler and Manufacturer

• Ready market
• Providing information
• Risk bearing
• Distribution of goods to distant places