Subject: Nature of International Trade, labor Productivity and comparative advantage Trade Trade refers to buying and selling of goods and services for money or money’s worth. It involves transfer or exchange of goods and services for money or money’s worth. The manufacturers or producer produces the goods, then moves on to the wholesaler, then to retailer and finally to the ultimate consumer. Trade is essential for satisfaction of human wants, Trade is conducted not only for the sake of earning profit; it also provides service to the consumers. Trade is an important social activity because the society needs uninterrupted supply of goods forever increasing and ever changing but never ending human wants. Different Types of Trade Trade can be divided into following two types, viz.
1. Internal Trade Internal trade is also known as Home trade. It is conducted within the political and geographical boundaries of a country. It can be at local level, regional level or national level. Hence trade carried on among traders of Delhi, Mumbai, etc. is called home trade. Internal trade can be further sub-divided into two groups, viz.
2. External Trade External trade also called as ForeignHYPERLINK “https://kalyan-city.blogspot.com/2011/03/what-is-foreign-trade-types-and.html” trade. It refers to buying and selling between two or more countries. For instance, If Mr. X who is a trader from Mumbai sells his goods to Mr. Y another trader from New York then this is an example of foreign trade. External trade can be further sub-divided into three groups, viz.
We will send an essay sample to you in 24 Hours. If you need help faster you can always use our custom writing service.Get help with my paper