Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board
Chapter 10: Foreign Trade of India
Q.3. Distinguish between the following:
1. Internal trade and International trade.
Basis | Internal trade | International trade |
Meaning | Internal trade refers to the buying and selling of goods within the geographical limits of a country. | International trade refers to the buying and selling of goods beyond the geographical limits of a country. |
Countries Involved | Only one country is involved. | Minimum Two countries are involved. |
Currency | Payments are made and received in-home currency only. | Payment is made and received in mutually agreed foreign currency only. |
Risk | Less degree of risk is involved | High degree of risk is involved, such as transit risk, risk of fluctuation of currency and demand, etc |
Government Restrictions | Internal trade is not restricted, except on a few goods. | International trade is strictly monitored by the government and prior approval is required before international transactions. |
