Internal Trade
8 Internal Trade
8.1 Introduction
In the lesson on trade you have already been made familiar with the distinction between internal and external trade i.e. between home trade and foreign trade. You will recall that internal trade consists of exchange of goods and services between people living within the same country. In this lesson you will learn about internal trade in detail.
8.2 Objectives
After studying this lesson you will be able to • • • • • • • • recall the meaning of Internal Trade; explain the features and importance of Internal Trade; enumerate the types of internal trade with the help of charts/ diagrams; state the meaning and characteristics of wholesale trade and retail trade; distinguish between wholesale trade and retail trade; enumerate the services of a wholesaler and a retailer; enumerate and explain the various types of retailers; differentiate between multiple shops and departmental store;
28 :: Business Studies
• •
state the conditions necessary for the success of a mail-order business; enumerate the characteristics of a Super Bazar.
8.3 Internal Trade: Meaning, Features and Importance
Meaning of Internal Trade
Internal trade is the sum total of activities which brings the producers and consumers within the same country together. It involves distribution of goods and services from the point of production to the point of consumption within the boundries of the same country.
Features and importance
The main features of Internal Trade are as follows: 1. 2. 3. 4. 5. 6. The buying and selling of goods takes place within the boundaries of the same country. The medium of exchange is the currency of the country. There are minimum legal and administrative formalities involved in organising internal trade. It involves transactions between producers, consumers and the middlemen. It consists of a distribution network of middlemen and agencies engaged in exchange of goods and services. Generally there is minimum interaction between the producers
8.1 Introduction
In the lesson on trade you have already been made familiar with the distinction between internal and external trade i.e. between home trade and foreign trade. You will recall that internal trade consists of exchange of goods and services between people living within the same country. In this lesson you will learn about internal trade in detail.
8.2 Objectives
After studying this lesson you will be able to • • • • • • • • recall the meaning of Internal Trade; explain the features and importance of Internal Trade; enumerate the types of internal trade with the help of charts/ diagrams; state the meaning and characteristics of wholesale trade and retail trade; distinguish between wholesale trade and retail trade; enumerate the services of a wholesaler and a retailer; enumerate and explain the various types of retailers; differentiate between multiple shops and departmental store;
28 :: Business Studies
• •
state the conditions necessary for the success of a mail-order business; enumerate the characteristics of a Super Bazar.
8.3 Internal Trade: Meaning, Features and Importance
Meaning of Internal Trade
Internal trade is the sum total of activities which brings the producers and consumers within the same country together. It involves distribution of goods and services from the point of production to the point of consumption within the boundries of the same country.
Features and importance
The main features of Internal Trade are as follows: 1. 2. 3. 4. 5. 6. The buying and selling of goods takes place within the boundaries of the same country. The medium of exchange is the currency of the country. There are minimum legal and administrative formalities involved in organising internal trade. It involves transactions between producers, consumers and the middlemen. It consists of a distribution network of middlemen and agencies engaged in exchange of goods and services. Generally there is minimum interaction between the producers