What is trade ? Explain different types of trade.
Answers
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.
Internal trade can also be classified as : (a) Local Trade, (b) State Trade, (c) Inter-State Trade.
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.
Trade is the action of buying-selling or exchanging goods and services between people, companies, countries and other entities.
TRADE :- 1) Home trade.
2) Foreign trade.
1) Home trade :-
(i) Wholesale trade .
(ii) Retail trade.
2) Foreign trade :-
(i) Import trade.
(ii) Export trade.
(iii) Entreport trade.