Question

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.

Answer 1

1. Entrepot trade is a sort of foreign trade in which items are imported from a foreign country and re-exported at a higher price to another country in order to profit.
2. Features of entrepot trade are as follows: (i) Entrepot trade is free from import duties charges. (ii) The goods which are imported are processed and re-packed for re-exporting them.