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MCQs · Q1

Q.Trade conducted entirely within the geographical boundaries of one country, in that country's own currency and under its own laws, is known as:
(A) Export Trade
(B) Entrepot Trade
(C) Internal (Home) Trade
(D) Import Trade

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✓ Free question

Trade is classified by the area it covers into Internal (Home) Trade — carried on within one country's boundaries, in its own currency, under its own laws — and External (Foreign) Trade, carried on across national boundaries.

Option-by-option analysis:

  • (A) Incorrect — Export Trade is a sub-type of External Trade, involving selling goods to a buyer in another country.
  • (B) Incorrect — Entrepot Trade is also a sub-type of External Trade — importing goods for the specific purpose of re-exporting them.
  • (C) Correct — this is exactly the definition of Internal (Home) Trade.
  • (D) Incorrect — Import Trade is a sub-type of External Trade, involving buying goods from a seller in another country.
✓Final answer

Option (C) is correct.

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