Question

explain some of merit and demerits of internal and external trade​

Answer 1

Answer:

Jayveersinh J Rajput

Answer 2

No trade barriers and less competition are the merits of internal trade and limited choice and no foreign earning are the demerits of internal trade.

Optimal use of natural resources and international co-operation and understanding are merits of external trade and impediment in the development of home industries and economic dependence are the demerits of external trade.

Explanation:

• Internal trade - Internal trade refers to trade that takes place within a country's geographical borders. It entails the purchase and sale of products or services within the same country rather than outside of it.
• Merits of internal trade - provides economical goods, low transportation cost, large employment opportunities, mobility of factors and promotes self reliance.
• Demerits fo internal trade - No sharing of resources, lack of professional management and difficulties in times of emergency.
• Extenal trade - External trade is defined as the purchasing and selling of items beyond national borders of different countries. It is also known as international trade or foreign trade.
• Merits of external trade - Availability of all types of goods,  specialization, stability in prices, advantages of large-scale production, exchange of technical know-how and establishment of new industries, increase in efficiency, development of the means of transport and communication and  ability to face natural calamities.
• Demerits of external trade - Political dependence, mis-utilisation of natural resources, import of harmful goods, storage of goods and danger to international peace.