Concept of Trade

We know that there are a number of activities of economy.These acrivities are business,trade,commerce and so on.Every activity plays an important role for the developmet of nation.Among all trade is also an important activity because it provides huge amount of tax that is used to develop infrastructure inside the country.

Trade is combination of buying and selling of product on the basis of money to fulfill the need wantdesire of customer at regular basis.

In other words we can say that trade is the part of business that purchase product and service in large amount and sell it in low amount according to need want of customers.

We can divide trade into two parts.These are

1.Internal trade

2.External trade

Internal trade- It is the first type of trade.It is also known as Home trade.The trade that is done in the boundary of nation this type of trade is known as internal trade.There are two parts of internal trade.These are Wholesale trade and Retail trade.

Wholesale trade-It is also an important trade.It belongs to internal trade.The trade in which we pruchase large amount of product and service to manufacture and sell less amount to retailer these type of trade is called wholesale trade.

Retail trade-It presents every place of world.The trade in which we purchase product and service from wholeseller and sell it to customers these type of trade is know as retail trade.

2.External trade-It is very popular trade.It presents every country of the world.It is also known as foreign trade.The process in which we purchase product from one country and sell it in the other country this type of trade is known as External trade.There are many type of external trade.

These are as below-

Export trade- The trade in which the person of one country sell product or service to the person of other country at large quantatity this type of trade is known as Export trade.

Import trade-It is also an important part of external trade.The process in which the trader of home country purchase product or service from the trader of other country and sell it in home country this type of trade is known as import trade.

Entreport trade-The trade in which we purchase product or service from one country store it in second country and sell it in third country.This type of trade is known Entrepot trade.

So we can say that trade is an important part of economy that covers village to metropolian cities and plays an important role to fulfill the need want desire of customers anf increase their living standard.