Trade
Trade could be defined as the purchase and sale of good on a consideration.
Today, as production of goods takes place on a large scale, trade helps to make the products available to the consumer. on the basics of its origin trade has two components.1. Internal trade/Local trade/Domestic trade
2.External trade/foreign trade/International trade
Internal Trade
This refers to the trading activities that take place within the territorial boundaries of a country. it is the process of buying and selling of goods and services within a country.Internal trade may be divided into two categories.
1. Wholesale Trade
Wholesale trade could be defined as the sale of goods to individuals whose aim to resell them to others - Retailer. Usually wholesale trade has special features such as large quantities being sold , and the wholesale prices being lower than the retail prices.2. Retail Trade
Retail trade is the sale of goods to satisfy the needs of the final consumers. Retailers introduces the goods to the consumers and also educstes him on the nature of goods. Selling small quantities of goods and at prices higher than the wholesale prices are the special features which could be seen in retail trade/Foreign Trade
Foreign trade is the purchase and sale of goods and services beyond the territorial boundaries if a country.1. Export Trade
This is the process of selling the excess production of a country yo other countries . on the basis of the theory of comparative advantage to them in excess of their requirements and get involved in export trade.2.Import Trade
The importation of foreign goods and services into a country from a foreign country is known as import trade. Under modern complex economic conditions no economy can operate without import and export trade. According to the theory of comparative advantage a country imports the commodities in which there is a comparative disadvantage. Further when the domestic production is insufficient to meet the demand / the balance will be imported.
0 comments:
Post a Comment