Briefly explain the economic importance of home trade?
Answers
=> The exchange of goods among people, states and countries is rererred to as trade. Importance :
(a) International trade of a country is an index to its economic prosperity.
(b) It is considered the economic barometer for a country.
(c) As the resources are space bound, no
country can survive without International trade.
=> The importance of domestic trade in a country is that it facilitates exchange of goods within the country. By doing this it also makes sure that factors of production reach to the right places so that the economy of the country can grow. By allowing all different types of goods and services to reach to all parts of the country it improves the standard of living of the residents of the country as well as the employment rate of the country. And it helps the growth of an industry by ensuring the availability of raw materials.
Traders from outside the country will have to come in contact with internal traders, because it is not easy to come directly into another country and get the required products.
Answer:
Explanation:
Home trade :
Home trade, also known as internal trade or Domestic trade, is the exchange of domestic goods within the boundaries of a country. This may be sub-divided into two categories, wholesale and retail.
The economic importance of home trade :
Home trade is significant because it promotes the exchange of goods within a nation. This also ensures that production inputs reach the proper locations, allowing the nation's economy to expand. By enabling all different kinds of commodities and services to reach every area of the nation, both the employment rate and the standard of living of the nation's citizens are raised. Additionally, it promotes the expansion of an industry by guaranteeing the supply of raw materials.
Because it is difficult to enter another country directly and get the necessary goods, foreign traders will have to interact with domestic traders.
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