Advertisements
Advertisements
Question
Distinguish between Internal trade and International trade.
Solution
| Basis | Internal trade | International trade |
| Meaning | Internal trade refers to the buying and selling of goods within the geographical limits of a country. | International trade refers to the buying and selling of goods beyond the geographical limits of a country. |
| Countries Involved | Internal trade is involved only one country. | International trade has involved a minimum of two countries. |
| Currency | Payments are made and received in-home currency only. | Payment is made and received in mutually agreed foreign currency only. |
| Risk | Internal trade is involved in less degree of risk. | International trade is involved a high degree of risk, such as transit risk, risk of fluctuation of currency and demand, etc. |
| Government Restrictions | Internal trade is not restricted, except for a few goods. | International trade is strictly monitored by the government and prior approval is required before international transactions. |
RELATED QUESTIONS
Identify and explain the concept from the given illustration:
Maharashtra purchased wheat from Punjab.
Answer in one sentence
What do you mean by internal trade?
Correct the underlined word and rewrite the following sentence:
When the trade activities are conducted between two or more countries, it is called as internal trade.
Buying and selling of goods and services within the boundaries of a nation are referred to as ______.
Identify & explain the concept from the given illustration.
Tamil Nadu purchases wheat from Punjab and Uttar Pradesh.
Complete the correlation:
Trade between India and Iran : International trade : : Trade between Maharashtra and Madhya Pradesh : ______
Identify and explain the concept from the given illustration:
Maharashtra sold mangoes to Himachal Pradesh.
Explain the concept of internal trade.
