Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 22 Types of Trade Notes
→ The essence of trade is to make goods and services available to those persons who need them and are able and willing to pay for them.
→ Buying and selling of goods and services within the boundaries of a nation are called internal trade.
→ A trader purchases goods not for his own use but for the purpose of sales to other traders and consumers at a profit.
→ “Purchase of goods in bulk from the manufacturers and selling them in smaller quantities to other intermediaries” is known wholesale trade.
→ Retail trade deals with the distribution of goods in small quantities to the consumers.
→ Foreign trade is a trade between a seller and buyer of different countries.
→ Import trade means buying goods from a foreign country for domestic use.
→ Export trade means the sale o f domestic goods to foreign countries.
→ Export trade is necessary to ,el! domestic surplus goods, to make better utilization of resources, to earn foreign exchange, to increase national income, to generate employment and to increase Government revenue.
→ Entrepot trade means importing of goods from one country and exporting the same to foreign countries. It is also known as ‘Re-export trade’.