Differentiate between International and local trade?

Question

Answer

Answer

Trade between one country to another country is known as international trade.    Trade between under the countries is known as local trade.

Answer

Trade which takes place between two countries is known as international trade nd which is in country is known as local trade

Answer

International Trade:
International trade refers to the exchange of goods and services between different countries. It involves the import and export of goods and services across national borders. International trade plays a crucial role in the global economy, as it allows countries to specialize in the production of goods and services in which they have a comparative advantage.

Local Trade:
Local trade, on the other hand, refers to the exchange of goods and services within a specific region or country. It involves the buying and selling of products within the domestic market.

Differences between International and Local Trade:

1. Scope:
- International trade has a broader scope as it involves transactions between countries on a global scale.
- Local trade has a narrower scope as it is limited to transactions within a specific region or country.

2. Distance:
- International trade involves long-distance transactions, as goods and services need to be transported across borders.
- Local trade involves shorter distances, as goods and services are traded within a smaller geographical area.

3. Regulations:
- International trade is subject to various regulations and policies, including tariffs, quotas, and trade agreements between countries.
- Local trade is governed by domestic regulations and policies set by the government or local authorities.

4. Market Size:
- International trade allows businesses to access larger markets and reach a global customer base.
- Local trade is limited to the size of the domestic market, which may be smaller compared to international markets.

5. Competition:
- International trade exposes businesses to global competition, as they have to compete with foreign companies in the global market.
- Local trade involves competition within the domestic market, where businesses compete with local companies.

6. Exchange Rates:
- International trade involves dealing with different currencies and exchange rates, which can affect the cost and profitability of transactions.
- Local trade is conducted in the domestic currency, without the need for currency conversion.

Overall, international trade offers opportunities for businesses to expand their market reach and access resources from other countries, while local trade focuses on serving the needs of the domestic market. Both forms of trade are essential for economic growth and development.

Answer

International trade is carried out between two or more countries while local trade in carried out within a countries boundaries.

Answer

Ok

Top Courses for Class 10View all

Science Class 10

Social Studies (SST) Class 10

Mathematics (Maths) Class 10

English Grammar Advanced

English Grammar Basic

Top Courses for Class 10

Top Courses for Class 10

Suggested Free Tests

Related Content

About Class 10

Class 10 Study Material

Class 10 All Subjects

NCERT Textbook Solutions

Other Classes

Important Links

Company