PPT - Internal Trade | Business Studies (BST) Class 11 - Commerce PDF Download

 Page 1


Internal Trade:
Meaning and Types
Page 2


Internal Trade:
Meaning and Types
Meaning of Internal Trade
Buying and selling of goods and services within the
boundaries of a nation are referred to as internal
trade.
Whether the products are purchased from a neighbor-
urhood shop in a locality or a central market or a depa-
rtmental store or a mall or even from any door-to- door
salesperson or from an exhibition, all these are exam-
ples of internal trade as the goods are purchased from
an individual or establishment within a country.
No custom duty or import duty is levied on such trade
as goods are part of domestic production and are me-
ant for domestic consumption.
Page 3


Internal Trade:
Meaning and Types
Meaning of Internal Trade
Buying and selling of goods and services within the
boundaries of a nation are referred to as internal
trade.
Whether the products are purchased from a neighbor-
urhood shop in a locality or a central market or a depa-
rtmental store or a mall or even from any door-to- door
salesperson or from an exhibition, all these are exam-
ples of internal trade as the goods are purchased from
an individual or establishment within a country.
No custom duty or import duty is levied on such trade
as goods are part of domestic production and are me-
ant for domestic consumption.
Generally, payment has to be made in the legal tender
of the country or any other acceptable currency.
Page 4


Internal Trade:
Meaning and Types
Meaning of Internal Trade
Buying and selling of goods and services within the
boundaries of a nation are referred to as internal
trade.
Whether the products are purchased from a neighbor-
urhood shop in a locality or a central market or a depa-
rtmental store or a mall or even from any door-to- door
salesperson or from an exhibition, all these are exam-
ples of internal trade as the goods are purchased from
an individual or establishment within a country.
No custom duty or import duty is levied on such trade
as goods are part of domestic production and are me-
ant for domestic consumption.
Generally, payment has to be made in the legal tender
of the country or any other acceptable currency.
Types of Internal Trade
Internal trade can be classified into two broad categor-
ies viz., (i) wholesale trade and (ii) retail trade.
Wholesale trade
Purchase and sale of goods and services in large
quantities for the purpose of resale or intermedi-
ate use is referred to as wholesale trade.
Page 5


Internal Trade:
Meaning and Types
Meaning of Internal Trade
Buying and selling of goods and services within the
boundaries of a nation are referred to as internal
trade.
Whether the products are purchased from a neighbor-
urhood shop in a locality or a central market or a depa-
rtmental store or a mall or even from any door-to- door
salesperson or from an exhibition, all these are exam-
ples of internal trade as the goods are purchased from
an individual or establishment within a country.
No custom duty or import duty is levied on such trade
as goods are part of domestic production and are me-
ant for domestic consumption.
Generally, payment has to be made in the legal tender
of the country or any other acceptable currency.
Types of Internal Trade
Internal trade can be classified into two broad categor-
ies viz., (i) wholesale trade and (ii) retail trade.
Wholesale trade
Purchase and sale of goods and services in large
quantities for the purpose of resale or intermedi-
ate use is referred to as wholesale trade.
Wholesaling is concerned with the activities of those
persons or establishments which sell to retailers and
other merchants, and/or to industrial, institutional an-
d commercial users but who do not sell in significant a-
mount to ultimate consumers.
Wholesalers serve as an important link between
manufacturers and retailers.
? They enable the producers not only to reach large
number of buyers spread over a wide geographical
area (through retailers), but also to perform a varie-
ty of functions in the process of distribution of goo-
ds and services.
? They generally take the title of the goods and bear
the business risks by purchasing and selling the go-