main features of internal trade
Answers
Answered by
2
The following are some of the important features of internal trade :
1) Trade within a nation :
The buying and selling of goods takes place within the boundries of a nation, subjectsto rules and regulation of the country.
2) Free exchange of goods :
There are no restriction on the echange of goods and services between the buyer and seller. In case of foreign trade, there are a number of restrictions, i.e., certain goods are banned from trading, other are canalised and so on.
3) Single currency :
Goods and services are exchanged for a single currency. For instance, In India, Indian Rupees are used as a medium of exhange.
4) Simplified trade procedure :
In home trade, there is a simplified trade procedure. Buyer places an order and tge seller executes it and receives his payment.
5) Simple taxes :
Internal trade is subjest to simple taxes. Such taxes include sales tax, octroi duty, and such other taxes. Foreign trade is subject to heavy customs duties.
6) Methods of payments :
In Internal trade, the two main methods of payments are - payments by cash and payment by cheques.
7) Low transpotr costs :
Internal trade is subject to low transport costs because the distance covered from the sellers place to buyer place is less as compared to foreign trade.
8) Free mobility of factors of production :
In home trade, there is free mobility of movable factors of production, i.e., labour and capital. There are no restriction on their mobility.
9) Other features :
- There are two types of internal trade - wholesale trade and retail trade
- There is less government interference.
- Risks and uncertainties are less as compared to foreign trade.
- There are no traiding blocks in home trade.
-It is subjest to less documentation formalities.
- The scale of operation are confined toa limited area, etc.
1) Trade within a nation :
The buying and selling of goods takes place within the boundries of a nation, subjectsto rules and regulation of the country.
2) Free exchange of goods :
There are no restriction on the echange of goods and services between the buyer and seller. In case of foreign trade, there are a number of restrictions, i.e., certain goods are banned from trading, other are canalised and so on.
3) Single currency :
Goods and services are exchanged for a single currency. For instance, In India, Indian Rupees are used as a medium of exhange.
4) Simplified trade procedure :
In home trade, there is a simplified trade procedure. Buyer places an order and tge seller executes it and receives his payment.
5) Simple taxes :
Internal trade is subjest to simple taxes. Such taxes include sales tax, octroi duty, and such other taxes. Foreign trade is subject to heavy customs duties.
6) Methods of payments :
In Internal trade, the two main methods of payments are - payments by cash and payment by cheques.
7) Low transpotr costs :
Internal trade is subject to low transport costs because the distance covered from the sellers place to buyer place is less as compared to foreign trade.
8) Free mobility of factors of production :
In home trade, there is free mobility of movable factors of production, i.e., labour and capital. There are no restriction on their mobility.
9) Other features :
- There are two types of internal trade - wholesale trade and retail trade
- There is less government interference.
- Risks and uncertainties are less as compared to foreign trade.
- There are no traiding blocks in home trade.
-It is subjest to less documentation formalities.
- The scale of operation are confined toa limited area, etc.
Similar questions