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lions [1.4K]
3 years ago
14

Explain the types of trade?​

English
1 answer:
11111nata11111 [884]3 years ago
4 0

Answer:

The process of buying and selling of goods and services on a market is known as trade. It involves transfer or exchange of goods for money. It is essential for the satisfaction of human needs /wants. Trade is categorized into two types as per it's transportation.They are :

  • Internal Trade
  • External Trade

<h3><u>Internal</u><u> </u><u>(</u><u> </u><u>Home </u><u>)</u><u>Trade</u><u>:</u></h3>

If the trade takes place within the country, it is called internal or domestic trade. The goods and services manufactured in one place may not be available in another place. Therefore, buying, selling or supplying of goods and services takes place from one place to another place with in a country. Example: Supply of vegetables and fruits in the urban areas from villages etc . Hence, the internal trade fulfills the needs of different localities. Internal trade deals with national currency. It is also called as home trade or domestic trade.

<h3><u>External </u><u>(</u><u> </u><u>Foreign</u><u> </u><u>)</u><u> </u><u>trade</u><u>:</u></h3>

If the trade takes place crossing the borders of country between two or more countries is called external Trade. A country has to import the goods and services which are not available within the same country and can export it's surplus goods and services to other countries. This process helps them fulfill each other's demands as well as earn foreign currency. Almost all the countries of the world import or export the goods and services which promote international trade relationship. The external Trade fulfills the national and international needs. It has to deal with the custom duty and payment is to be made in international currency. It is also called as international trade or foreign trade.

Hope this helps...

Good luck on your assignment...

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