Essay on the internal trade
Answers
In the lesson on trade you have already been made familiar with the distinction between internal and external trade i.e. between home trade and foreign trade. You will recall that internal trade consists of exchange of goods and services between people living within the same country. In this lesson you will learn about internal trade in detail.
After studying this lesson you will be able to recall the meaning of Internal Trade; explain the features and importance of Internal Trade; enumerate the types of internal trade with the help of charts/ diagrams; state the meaning and characteristics of wholesale trade and retail trade; distinguish between wholesale trade and retail.
Those who are engaged in wholesale trade are called wholesalers. They act as a link between the manufacturers or producers and the retailers: Generally they specialise and deal in one or a few products. Characteristics: Following are the features of wholesale trade (i) The wholesaler generally deals in one or a few items. He becomes a specialist trader in that line e.g. machinery, textiles, medicines etc. Wholesalers buy goods from the manufacturers and producers in bulk and sell them again in large quantities to the retailers. Wholesale trade requires a large amount of capital to be invested. This is because purchases are made in bulk, advances are given to manufacturers, and the goods are sold on credit. Besides it also (ii) (iii) Internal Trade : 31 requires large storage space. (iv) Wholesalers have direct contact with manufactures but indirect contact with consumers as they generally deal with the retailers. Generally people engaged in wholesale trading of similar goods have their business premises located in the same area for the convenience of the retailers. Besides selling, wholesale trade is also involved in some other activities like packaging, grading, advertising, and market research. (v) (vi) Services of wholesalers Wholesalers render various services to the producers and retail traders.
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