TRADE

Trade refers to the sale,transfer or exchange of goods.It is an activity by which buyers and sellers exchanges useful goods and services for mutual advantage.It is process of by which goods are taken from the source of production to the consumers.The persons engaged in trade from the source of production to the consumers.The acts as an intermediary between producers and consumers.Trade may be broadly classified into two parts:(a)home trade and(b)foreign trade.

(a)Home trade:Home trade consist of buying and selling goods within the boundries of a country .Payement for such sale are made in national currency directly or through the banks and the internal transportation system is utilized for movement of goods.It may be further sub-divided into wholesale and retail trade.

(b)Foreign trade:Foreign trade involves purchase and sale of goods between different countries.For example,trade carried on between new york and Kathmandu.Two countries are involved in foreign trade.It may be further sub-divided into into import trade ,export trade and enterport trade.