Question

explain the types of trade ????​

Answer 1

Answer:

Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties. Trade can take place within an economy between producers and consumers.

Trade can be divided into following two types, viz.,

Trade can be divided into following two types, viz.,Internal or Home or Domestic trade.

Trade can be divided into following two types, viz.,Internal or Home or Domestic trade.External or Foreign or International trade

Answer 2

Answer:

Trade refers to buying and selling of goods. A trader purchases goods from manufacturers and sells them to consumers. A trader acts as intermediary between the manufacturer and the consumers. Trade is confined to buying and selling of goods and is a part of commerce, which is wider term that includes trade and aids to trade.

Trade may be classified in two categories :

1. Internal Trade

2. External Trade.

Internal Trade :

• Internal trade is done within the geographical boundaries of a country. As an example, trade done amongst the traders of Delhi, Mumbai, Chennai, Kanpur and Amritsar etc. is called Internal Trade.

Types of Internal Trade :

• (i) Wholesale Trade : It involves purchase and sale of goods in wholesale quantities. Large quantities of goods purchased from manufacturer are sold in small quantities to various retailers.

• (ii) Retail : It involves the sale of goods to consumers by the retailers. A retailer buys the goods from a wholesaler and sells them to customers in their required quantities. It is a link between a wholesaler and consumer. Different types of goods are available at a retailer shop so that a customer could buy the goods of his own choice.

External Trade :

Whenever trade occurs between two countries, it is known as external trade. In foreign trade, both buyer and seller live in different countries. If Reliance Ltd. sells Polyester Yarn to a French firm or L&T Ltd. purchases a heavy machine from a Swiss firm, these would classified as external trade.

Types of External Trade :

• 1. Import Trade : When the trader of one country buys the goods from foreign countries, it is known as import trade for the trader who buys the goods.

• 2. Export Trade : When the trader of a country sells goods to a foreign country, it is known as export trade for the trade who sells the goods e.g., if a tea firm of Darjeeling sells tea to U.K., it is export trade.

• 3. Entrepot Trade : The goods imported from one country for export to another country, is known as entrepot trade. It is also known as Re-export. It is done when a country does not have her own seaport or not having good political relations with other countries or no direct access to those countries from where goods are to be imported

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