Question

What are the features of Internal trade?

Answer 1

1. The buying and selling of goods take place within the boundaries of the same country.
2. Payment for goods and services is made in the currency of the home country.
3. It involves transactions between the producers, consumers, and middlemen.
4. It consists of a distribution network of middlemen and agencies engaged in an exchange of goods and services.
5. In-home trade the risk of transportation is very less when compared to foreign trade.
6. In-home trade the laws prevailing in that country only have to be followed.
7. The aim of home trade is to provide goods and services economically.
8. The goods must be a part of domestic production.
9. Goods must be purchased from an individual or a firm established within a country.
10. Goods can be delivered using locally available modes of transport.
11. It does not involve any custom/import duty, but buyers need to pay the taxes to the Government.