Internal Trade

Internal Trade

  • Submitted By: rajatsunil
  • Date Submitted: 02/11/2014 12:02 AM
  • Category: Business
  • Words: 3744
  • Page: 15
  • Views: 46

:: Internal Trade::
Trade : Trade refers to the process of buying and selling of goods and services with the objective of earning profit.
Internal Trade : Buying and selling of goods and services within the geographical boundaries of a country is called internal trade. In other words trade takes place between the people of the same country then it is termed as internal trade.
Features of Internal Trade
1. Buying and selling of goods and services takes place within a country
2. Payments are made and received in the home currency only.
3. There is no or less legal formalities are required.
4. Local modes of transport can be used for transfer of goods.
5. No custom duty or import duty is levied on such trade.

Internal trade can be classified into two broad categories.
1. Wholesale trade
2. Retail trade

1. Wholesale Trade
Buying and selling of goods and services in large quantities for the purpose of resale or intermediate use is referred to as wholesale trade. Wholesalers acts as an important link between manufacturers and retailers. They purchase in bulk and sell in small lots to retailers.
Features of Wholesalers
1. Wholesaler acts as a link between manufacturers and retailer.
2. Wholesaler deals with large quantities of goods.
3. Wholesaler is specialized in few or one line of product.
4. Wholesaler purchases goods in bulk quantities and sells in small quantities to retailers.
5. Wholesaler usually maintains large stock of goods for steady supply.
6. Wholesalers also sometime perform promotional activities to push sells.
7. Profit margin of wholesalers is generally low.
8. They also extend credit facility to retailers.
Services of Wholesaler to Manufacturers
1. Economy of Scales: Wholesalers enable manufacturers to undertake large scale production as they purchase goods in large quantities from them.
2. Risk Sharing: Wholesaler deals in goods...

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