Question

What is trade? What are the types of trade?

Answer 1

Trade is buying and selling of goods and services in terms of money or worth money.

It comprises transfer of exchange of goods and services for the money’s worth.

The manufacturers produces goods and sells to wholesalers and then to the retailers which is then sold to the consumers.

Trade can be divided into two types i.e. internal or domestic trade or home trade and external or international trade or foreign trade.

Answer 2

Explanation:

Trade can be defined as the act of buying and selling goods and services, which involves the exchange of goods and services between two people or parties; hence money is used as a medium of exchange.

• There are two main types of trade namely: internal trade also known as home or domestic trade, and external tradewhich is also known as international trade

1. Internal trade involves buying and selling of goods and services within the same country.
2. While external trade involves buying and selling of goods and services with other countries.