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Maharashtra State BoardHSC Commerce: Marketing and Salesmanship 12th Standard Board Exam
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Syllabus

Types of Foreign Trade

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Notes

Types of foreign trade : 
 Foreign trade is divided into the following three types.
1) Import Trade,
2) Export Trade
3) Entrepot Trade
1) Import Trade :
Import trade refers to purchase of goods and services by one country from another country or inflow of goods and services from foreign country to home country. For example, India imports petroleum from Iraq, Kuwait, Saudi Arabia, etc.
2) Export Trade :
Export trade refers to the sale of goods by one country to another country or outflow of goods from one country to foreign country. For example, India exports tea, rice, jute to China, Hong 
Kong, Singapore etc.
3) Entrepot Trade :
Entrepot trade refers to purchase of goods and services from one country and then selling them to another country after some processing operations. For example, Japan imports raw material required to make electronic goods like, radio, washing machine, television etc. from England, Germany, France etc. and sells them to various countries in the world after processing them.

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Related QuestionsVIEW ALL [9]

Identify and explain the concept from the given illustration:

India sold wheat to Malaysia.

Study the following passage and answer the following questions:

     Entrepot trade is a trade in which goods are imported from a foreign country for re-exporting to another country at a higher price. It simply means buying goods from one nation and selling them to another nation to earn profits. Entrepot trade is free from import duties charges. Goods imported in entrepot trade are kept and stored in bonded warehouses till the time they are re-exported to different countries. The goods which are imported are processed and re-packed for re-exporting them.

Questions:

  1. Write the meaning of entrepot trade in your own words.
  2. Write any two features of entrepot trade.

Give an economic term:

Purchase of goods from one country and selling them to another country.

Distinguish Between:

Import Trade and Export Trade

Identify and explain the concept from the given illustration:

India purchased petroleum from Iran.

Study the following passage and answer the questions:

    After agriculture, the handloom is the second largest income-generating activity in India. The industry has negligible power usage, low environmental concerns and high potential for innovation. A large number of handlooms are located in the northeastern region of India, with Assam accounting for almost half of the country. States like Andhra Pradesh, Uttar Pradesh, Odisha and Tamil Nadu also have weaving centres. India exports handloom products to more than 20 countries in the world. Some of the top importers are the US, the UK, Spain, Australia, Italy, Gennany, France, South Africa, Netherlands, etc. The US is the biggest importer of handloom products from India, consistently the top importer for the past 8 years. During 2020-21, the country imported handloom products worth ₹613.78 crore (US 83 million Dollar). The exports to the UK, which was the second largest importer of handloom from India during 2020-21 increased by 9.7% to ₹140.2 crore (US 19 million Dollar) from ₹123.13 crore (US 17.3 million Dollar) during 2019.20.

Questions:

  1. Name the states in which handloom centres are located numerously.
  2. Name the countries/continents to which India exports handloom products.
  3. Write in brief about India's handloom export trade with the US.

Identify and explain the concept from the given illustration:

England imported cotton from India, made readymade garments from it and sold them to Malaysia.

Purchase of goods and services from one country and selling them to another country is ______

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