Home ECONOMICS Meaning of Trade and Types of Trade

Meaning of Trade and Types of Trade

Meaning of Trade Types of Trade
Meaning of Trade Types of Trade

We discuss the Classification of business activities. One of the most important business activities is Trade. So, in this article you should clear about the Meaning of Trade and Types of Trade. 

Classification of business activities

Business activities are classified in three ways:

  • Trade
  • Commerce
  • Industry
Meaning of Trade

The exchange of goods or services in exchange for goods or services or exchange of goods or services in exchange for money for the purpose of profit.

For example, if you buy a book from the shopkeeper and pay money against the book purchase, the money is exchanged for the item. If you buy a bus ticket and travel on the bus, the service is exchanged for money.

how business are categories as trade or Profession is depends on some factor. if followings characters are found in business than it is categories as Trade.

  • Trade is an economic activity.
  • There are two parties to the trade – the buyer and the seller.
  • Exchange is inevitable for trade.
  • Trade leads to the transfer of ownership of an item or service.
  • Payment of money or item in payment of item.
  • Trade is a continuous activity.
  • The value of an item or service is determined in money.
  • Trade is a legal activity.
Types of Trade

There are two types of trade.

  • Internal trade
  • International trade

(1) Internal trade: Trade in different areas within the border of the country means internal trade. The merchant of Ahmedabad buys apples from Kashmir, or the trader from Nagpur sends Rajkot orange so it is said that there is internal trade.

In terms of distribution, internal trade can be divided into two parts:

  • Wholesale trade
  • Retail trade
    Internal trade
    Internal trade

The wholesaler on a large scale purchases the goods from the manufacturer and distributes the goods to the retailer as per his requirement. There is a link between wholesaler and retailer of wholesale merchandise.

In the retail trade, the wholesaler buys the goods from the wholesaler and supplies the goods to the customers as per their requirement.

(2) International Trade: International trade is the trade between any two countries. International trade crosses country borders.

For example, a Japanese company sells television to a merchant in India, or saffron marijuana from India is available in the USA. To be sent.

International trade includes Followings.

  • Import trade
  • Export trade
    International trade
    International trade

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