Question

What is meant by Trade? What is the difference between international and local Trade?

Answer 1

Hint: A country's level of trade indicates how vastly it ships its production. This is estimated by the percent of exports out of GDP. It implies how globalized an economy is. Trade has originated from human life and shall continue as long as human life exists on the earth.

Complete Answer: The process of Trade involves buying and selling of goods and services, compensation paid by a buyer to a seller, or the exchange of goods or services between parties.

There are 2 types of Trade:

Domestic Trade	International Trade
1.It is conducted within a particular geographical boundary which can be at the local, regional or national level.	1. It refers to buying and selling between two or more countries.
2. It can be further divided into; -Wholesale trade: The wholesaler is a link between manufacturer and retailer and acquires a prominent position and both manufacturers and retailers are dependent on him.- Retail trade: The retailer acts as a link between wholesalers and consumers.	2. International Trade can be further divided into; export trade, import trade and entrepot trade.

Note: Trade is administered for the sake of earning profit as it provides service to the consumers. It is an important social activity as society needs a supply of goods and services for money. It improves the standard of living of the consumers. The producer produces the goods, then moves to the wholesaler, then to the retailer and finally to the ultimate consumer.