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SAI INTERNATIONAL SCHOOL

CLASSS XI
SUBJECT: BUSINESS STUDIES

CHAPTER -09,

Internal Trade

Topics: Trade, Internal Trade, Wholesale Trade, Services to Manufacturers & Retailers

(LESSON NOTES - 41)

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.
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.
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 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 are examples 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 meant for domestic consumption.