Question

Write short answers of the following

Give classification of foreign Trade in brief.

Answer 1

The trade that takes place between two or more countries is known as foreign trade or external trade. The following are the various forms of external trade:

i. Import trade- It refers to the purchase of goods and services from foreign countries in order to consume or use them in the native country.
ii. Export trade- It refers to the selling of goods and services of the native country to foreign countries.
iii. Entrepot trade- It involves importing goods from a foreign country with the purpose of exporting it to another country at a higher price.