Question

Justify the following statement.

A combination of import-export trade is entrepot trade.

Answer 1

1. Import, export, and entrepot trade are parts of foreign trade.
2. When the goods are purchased from other countries, it is called import trade.
3. When the goods are sold to other countries, it is called export trade.
4. A combination of import and export trade is called entrepot trade.
5. In the case of entrepot trade, goods are first purchased from one country, i.e., imported, and then sold to or exported to other countries.
6. E.g., an Indian trader purchased some computers from japan and sold them to Sri Lanka. Will be included in entrepot trade
7. Thus, entrepot trade is a combination of import and export trade.