Ch-10 - CHAPTER 10 INTERNAL TRADE LEARNING OBJECTIVES After...

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C HAPTER 10 I NTERNAL T RADE LEARNING OBJECTIVES After studying this chapter, you should be able to: describe the meaning and types of internal trade; specify the services of wholesalers to manufactures and retailers; explain the services of retailers; classify the types of retailers; explain the forms of small scale and large scale retailers; and state the role of Chambers of Commerce and industry in the promotion of internal trade.
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226 BUSINESS STUDIES 10.1 I NTRODUCTION Trade refers to buying and selling of goods and services with the objective of earning profit. Mankind has been engaged in trading, in some form or the other, since early days of civilisation. The importance of trade in modern times has increased as new products are being developed every day and are being made available for consumption throughout the world. No individual or country can claim to be self-sufficient in producing all the goods and services required by it. Thus, each one is engaged in producing what it is best suited to produce and exchanging the excess produce with others. On the basis of geographical location of buyers and sellers, trade can broadly be classified into two categories (i) Internal trade; and (ii) External trade. Trade which takes place within a country is called internal trade. Trade between two or more countries, on the other hand, is called external trade. The present chapter discusses in detail the meaning and nature of internal trade and explains its different types and the role of chambers of commerce in promoting internal trade. 10.2 I NTERNAL T RADE 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 neighbourhood shop in a locality or a central market or a departmental store or a mall or even from any door- to-door salesperson or from an exhibition, all these would be considered to be examples of internal trade as the goods are purchased from an individual or establishment within a country. No custom duty or import Have you ever thought if there were no markets, how products of different manufacturers would reach us? We are all aware of our general provisions store round the corner which is selling items of our daily need. But is that enough? When we need to buy items of a specialised nature, we like to look at bigger markets or shops with variety. Our observation tells us that there are different types of shops selling different items or specialised goods and depending on our requirements we purchase from certain shops or markets. In rural areas, we may have noticed people selling their goods on the streets, these goods may range from vegetables to clothes. This is a completely different scene from what we see in the urban areas. In our country, all kinds of markets co-exist in harmony. With the advent of imported goods and multinational corporations, we have shops selling these products too. In big towns and cities, there are many retail shops selling particular branded products only. Another aspect of all this
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This note was uploaded on 01/19/2012 for the course BUSINESS 3BU taught by Professor Andrewclarke during the Fall '09 term at Central European University.

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Ch-10 - CHAPTER 10 INTERNAL TRADE LEARNING OBJECTIVES After...

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