Question

Discuss the differences between Internal Trade and International Trade.

Answer 1

sr no	Internal Trade	International Trade
1	Trade takes place between different individuals and firms within the same nation.	Trade takes place between different individuals and firms in different countries.
2	Labour and capital move freely from one region to another.	Labour and capital do not move easily from one nation to another.
3	There will be a free flow of goods and services since there are no restrictions.	Goods and services do not easily move from one country to another since there are a number of restrictions like tariffs and quotas.
4	There is only one common currency.	There are different currencies.
5	The physical and geographical conditions of a country are more or less similar.	There are differences in the physical and geographical conditions of the two countries.
6	Trade and financial regulations are more or less the same.	Trade and financial regulations such as interest rate, trade laws differ between countries.