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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