Question

List types of trade and explain each of them

Answer 1

Answer:

Import Trade:

It refers Purchase of goods by a firm in one country from a firm in another country. The inflow of goods in a country is called import trade.

Export Trade:

It refers to sale of goods by a firm in one country to a firm in another country. The outflow of goods from a country is called export trade.

Entrepot Trade:

It is also known as re-export. It refers to purchase of goods by a firm from one country and then selling them to a firm in another country. Many times goods are imported for the purpose of re-export after some processing operations. This is called entrepot trade.