Question

3) What is difference between inland and foreign trade?​

Answer 1

# Inland Trade:-

1. Meaning:

Purchase and sale of goods within a country is known as internal or home trade.

2. Different Currencies:

Home or domestic trade involves the use of only one currency, i.e., the domestic or home currency.

3. Exchange and Trade Control:

Within a country, there is a free flow of goods and services.

4. Politically Different:

Home or internal trade takes place within the same political unit.

5. Transportation Costs:

Internal or domestic trade involves less transportation cost.

6. Risk:

In home trade, the amount of risk is comparatively less.

# Foreign Trade:-

1. Meaning:

Purchase from and sale of goods and services outside the country is called the international or foreign trade.

2. Different Currencies:

International trade involves the use of two different currencies, the local currency and a foreign currency.

3. Exchange and Trade Control:

There is no free flow of goods and services from one country to another.

4. Politically Different:

International or foreign trade takes place between politically different units.

5. Transportation Costs:

International trade involves comparatively greater transportation cost.

6. Risk:

In foreign trade, there is a greater risk.