Introduction

Trade means the buying and selling of goods and services with the aim of earning a profit. It is one of humanity's oldest activities — people have traded in one form or another since the earliest days of civilisation.

• Why trade matters more today: New products are being developed almost every day and are made available for use across the world. As choices multiply, trade becomes ever more important in modern life.
• No one is self-sufficient: No individual and no country can produce, on its own, every good and service it needs. So each producer (and each nation) concentrates on making what it is best suited to produce, and exchanges its surplus with others.

Two broad kinds of trade (by the location of buyers and sellers):

• Internal trade — trade that takes place within a country.
• External trade — trade carried on between two or more countries.

This chapter looks closely at the meaning and nature of internal trade, explains its different types, and describes the role of the chambers of commerce in promoting it.