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different between internal and external trade
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different between internal and external trade Related: NCERT Solution...
Trade is the defined as the exchange of goods and services between person or entity to another. The trade involves buying and selling of goods and services. Trade is the central activity in the economy. Trade not only refers to the exchange of goods and services within the country but also between two or more countries.
Trade is basically divided into two types,
1. Internal Trade
2. External trade
There are a lot of difference between internal trade and external trade means
Internal trade refers to the trade within the borders of the country.
External Trade refers to the trade between two or more countries.
Exchange of Currencies
There is no exchange of currencies takes place in the Internal Trade because there is a same currency in the country
External Trade involves the exchange of currencies between the nations which are involved in the trade.
Restrictions on transfer of goods
Internal trade usually doesn't have any restrictions on movement inside the country
External Trade is subjected to many restrictions on transfer to certain goods to certain countries.
Transportation costs
Internal Trade generally has fewer transportation costs and risks to transfer the goods.
External Trade involves very high transportation costs and risky situations to transfer goods from one country to another
Transport Systems
Internal Trade depends upon the network and internal transport systems like roads, railways, etc.
External Trade depends upon the seaways and the airways between the countries involved in the trade
Approvals
The Internal trade involves fewer documentations and approvals from the government to transfer the goods.
External Trade involves more documentations and approvals from government and it is a long process to get approvals from government.
Volume of Trade
The volume of the trade depends upon the population of the country, demand for the product, etc
External Trade has many restrictions imposed on free entry of goods and many duties and taxes have to be paid to trade goods between countries.
Time Gap
Internal trade usually have less time gap between the goods dispatched and goods received and payment received for the consignment.
External Trade involves wide time gap between the goods dispatched from the home country and goods received by the other country.
Insurance
The goods ofinternal Trade don't carry a compulsion to have the insurance for goods in transport.
The goods which are sent to other countries by the foreign need to be insured compulsorily.
Advantage to People
The goods of internal don't carry a compulsion to have the insurance for goods in transport.
The goods which are sent to other countries by the foreign need to be insured compulsorily.
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different between internal and external trade Related: NCERT Solution: Chapter 8 - Market Around Us ,SST, Class 7
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different between internal and external trade Related: NCERT Solution: Chapter 8 - Market Around Us ,SST, Class 7 for Class 7 2024 is part of Class 7 preparation. The Question and answers have been prepared according to the Class 7 exam syllabus. Information about different between internal and external trade Related: NCERT Solution: Chapter 8 - Market Around Us ,SST, Class 7 covers all topics & solutions for Class 7 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for different between internal and external trade Related: NCERT Solution: Chapter 8 - Market Around Us ,SST, Class 7.
different between internal and external trade Related: NCERT Solution: Chapter 8 - Market Around Us ,SST, Class 7 for Class 7 2024 is part of Class 7 preparation. The Question and answers have been prepared according to the Class 7 exam syllabus. Information about different between internal and external trade Related: NCERT Solution: Chapter 8 - Market Around Us ,SST, Class 7 covers all topics & solutions for Class 7 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for different between internal and external trade Related: NCERT Solution: Chapter 8 - Market Around Us ,SST, Class 7.
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