Question

Answer in brief.

Give two types of Foreign Trade.

Answer 1

Trade with other countries is called foreign trade. Foreign trade is of three types.

1. Import Trade: When the goods or services are purchased from other countries it is called import trade.
2. Export trade: When the goods are sold to other countries, it is called export trade.
3. Entrepot trade: It is also called re-exporting. In this case, goods are first brought from one country and again resale to another country. E.g. A buyer from India imports goods from France and exports them to Australia.