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WHAT IS TRADE TYPES WHAT IS TRADE TYPES OF TRADE AND AID TO OF TRADE AND AID TO TRADETRADE

Topic:

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TRADETRADETrade means buying and sellingThe system or channel,

which helps the exchange of goods.

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TYPES OF TRADE TYPES OF TRADE 1. Home trade2. Foreign trade

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HOME TRADEHOME TRADE The purchase and sale of goods in

side the 

country is called home trade also known domestic local’ or ‘internal trade’

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Types of home tradeTypes of home trade Wholesale trade Retail trade

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Wholesale tradeWholesale tradeIt involves selling of goods in larg

e  quantities to shopkeeper

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Retail tradeRetail tradeRetailing means selling the goods

 in small quantities to the ultimate consume

rsMiddleman

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FOREIGN TRADEFOREIGN TRADETrade or exchange of goods and 

services 

between two or more independent 

countries It is also called international trad

e.

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Types Foreign tradeTypes Foreign tradeImport tradeExport trade

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Import tradeImport tradeWhen goods or services are purc

hased  from other country.

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Export trade:Export trade: When goods or services are sold 

to any other country 

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2. AID TO TRADE2. AID TO TRADEInstitutions that are meant and build to

assist and support the trading process.Means all those things which are helpful 

intrade.

Such as:a) Banking e) Agents b) Transportation  f) finance c) Insurance  g) Advertising d) Warehousing  h) Communication 

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BankingBankingCommercial banks and other financial i

nstitution

help the seller and the buyer in receiving and  

making payments.

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TransportationTransportationThe goods reach the consumers by 

different

means of transportation like air, roads, rails, 

Sea etc

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Insurance Insurance In

the transfer of goods from one place to another

   There is a risk  of loss due to accident, fire, theft  

The insurance companies help out the traders 

with this problem through insurance policy.

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WarehousingWarehousingA need  for 

warehouses arises in order to store

the manufactured goods. 

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AgentsAgentsThey are the persons who act as the a

gent of  either buyer or seller, they perform these 

activities for commission.

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FinanceFinanceFinancial institutions provide long

‐term finance to the producers.

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AdvertisingAdvertisingAdvertisement is an easy way 

to inform th large number of customers about the goods.  This can be done through TV,  newspapers, radio etc.

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CommunicationCommunicationThe producers, wholesalers, transport

ers, banks warehouse‐keepers, advertisers and consumers live at different place they

need to communicate each other using mobile telephone etc

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