What Do You Mean By Trade And The Divisions Of Trade?


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abdul rehman answered
Trade is the final state of business activity and involves sale and purchase of products. It helps in transfer of goods from seller to buyer. Trade means buying and selling of goods. A trader purchases goods from producers and sells them to ultimate consumers. Producers are few in number and thus they cannot deal directly with each and every consumer. A trader creates a link between producers and consumers.

Types of trade

Home trade refers to buying and selling of goods within the boundaries of one country. All transactions connected with it, such as payments and transporting, are national and no external agency is involved. It is also known as internal trade or domestic trade.
Types of home trade
Wholesale trade relates to purchase of goods in large quantities from producers and their sale to retailers in small quantities. It serves as a link between producers of goods and the retailers.
Retail trade relates to purchase of goods in small quantities from the wholesalers and their sale to the ultimate consumers. It serves as a link between the wholesalers and consumers.

Foreign trade is also known as international trade. Foreign trade includes import trade as well as export trade.
Types of foreign trade
Import trade means purchasing goods from foreign countries for home consumption.
Export trade mean selling of country's goods to foreign countries the world.

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