Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board
Chapter 10: Foreign Trade of India
Q.4. Answer the following:
1. Explain the concept of foreign trade and its types.
Answer: -
Foreign Trade is traded between the different countries of the world. It is called International Trade or External Trade.
Types of foreign trade:
Foreign trade is divided into the following three types
Import Trade: Import trade refers to the purchase of goods and services by one country from another country or inflow of goods and services from a foreign country to the home country. For example, India imports petroleum from Iraq, Kuwait, Saudi Arabia, etc
Export Trade: Export trade refers to the sale of goods by one country to another country or outflow of goods from one country to a foreign country. For example, India exports tea, rice, jute to China, Hong Kong, Singapore, etc.
Entrepot Trade: Entrepot trade refers to the purchase of goods and services from one country and then selling them to another country after some processing operations. For example, Japan imports raw material required to make electronic goods like radio, washing machine, television, etc. from England, Germany, France, etc. and sells them to various countries in the world after processing them.
