explain the types of traders
Answers
Types of traders
1. Internal Trade
Internal trade is also known as Home trade. It is conducted within the political and geographical boundaries of a country.
Internal trade can be further sub-divided into two groups :-
1. Retail Trade : It involves buying in smaller lots from the wholesalers and selling in very small quantities to the consumers for personal use.
2. Wholesale Trade : It involves buying in large quantities from producers or manufacturers and selling in lots to retailers for resale to consumers.
2. External Trade
External trade also called as Foreign trade. It refers to buying and selling between two or more countries.
External trade can be further sub-divided into three groups:-
1. Import Trade : When a trader in home country obtains or purchase goods from a trader located in another country, it is called import trade.
2. Entrepot Trade : When goods are imported from one country and then re-exported after doing some processing, it is called entrepot trade.
3. Export Trade : When a trader from home country sells his goods to a trader located in another country, it is called export trade.