Trade Flashcards
(17 cards)
What is the meaning of trade?
The buying and selling of goods and services
Trade is a branch of _______.
[commerce]
What are the two main types of trade?
- Home Trade
- Foreign Trade
Define Home Trade.
The buying and selling of goods and services within the boundaries of a country
Characteristics of Home Trade include:
- Occurs within a single country
- Common currency is used
- No import or export duties
- Involves local buyers and sellers
- Goods are often meant for immediate consumption
What are the divisions of Home Trade?
- Wholesale Trade
- Retail Trade
Define Wholesale Trade.
Buying of goods in large quantities from manufacturers and selling in smaller quantities to retailers
Who is a wholesaler?
A person who engages in wholesale trade
Functions of the Wholesaler include:
- Buying in Bulk
- Breaking Bulk
- Storage
- Risk Bearing
- Transportation
- Financing
- Market Information
- Branding and Packaging
Types of Wholesalers include:
- Merchant Wholesalers
- Agent Wholesalers
- Specialized Wholesalers
Define Foreign Trade.
The exchange of goods and services between one country and another
Types of Foreign Trade include:
- Import Trade
- Export Trade
- Entrepot Trade
Characteristics of Foreign Trade include:
- Involves two or more countries
- Different currencies are used
- Requires documentation
- Subject to customs duties and tariffs
- Influenced by exchange rates and international laws
Importance of Foreign Trade includes:
- Access to Goods Not Produced Locally
- Specialization
- Earnings of Foreign Exchange
- Improved International Relations
- Expansion of Market
- Employment Opportunities
- Revenue to Government
What is Import Trade?
Bringing goods and services into a country from another
What is Export Trade?
Selling goods and services from one country to another
What is Entrepot Trade?
Goods are imported into a country and then re-exported to another country without being used locally
