Question

Which of the following justifies the importance of domestic trade?

• A. Domestic trade increases the value of a country's currency.
• B. Domestic trade improves the relations between the state governments of a country.
• C. Domestically traded goods are cheaper than imported goods.
• D. Domestic trade helps fulfil the needs of a large and diverse population of a country.

Answer 1

The correct option is D Domestic trade helps fulfil the needs of a large and diverse population of a country.

No region is self-sufficient. In order to fulfill the diverse needs of the people, trade is encouraged. In trade, the goods move from the place of excess to the place of deficit. The movement of goods between different regions within the same country is called domestic or internal trade.