Question

Which one of the following terms is used to describe trade between two or more countries?

• A. Internal trade
• B. International trade
• C. External trade
• D. Local trade

Answer 1

The correct option is B

International trade

Answer: The correct answer is option (B) – International trade

Local Trade

• Trade carried on in villages, towns and cities is called local trade.
• Trade carried on between two or more states is called state level trade.
• Without international trade it is not possible for any country to survive as the resources are space bound.

International Trade

• An index to the economic prosperity of a nation is its international trade.
• International trade is nothing but the trade carried out between two nations.
• International trade is carried out through land, air or sea.
• Economic barometer of a country is its international trade.
• Favourable balance of trade is the situation where the value of exports is more than the value of imports.
• The components of trade are imports and exports.
• The difference between a nation’s export and import is the balance of its trade.
• Unfavourable balance of trade is the situation where the value of imports are more than the value of exports.