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SAI INTERNATIONAL SCHOOL

CLASSS XI

SUBJECT: BUSINESS STUDIES

CHAPTER -9, Internal Trade

Topics: Introduction, Meaning, Wholesale Trade

(LESSON NOTES-40)

INTRODUCTION

i. 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 civilization.

ii. 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.

iii. 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.

iv. 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.

INTERNAL TRADE
i. 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 neighborhood 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.