Question 34 of 36
Q.Explain the difference between internal trade and international trade.
Gujarat GsebGujarat Board (GSEB) HSC Commerce Board 2026Subjective· 3mImportance★★★★★
94% · 34/36 Questions
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Start your 14-day free trial to unlock the full solution →Internal trade = within a country (one currency, no barriers); international trade = between countries (different currencies, tariffs, restrictions).
Difference between internal trade and international trade:
| Basis | Internal (domestic) trade | International (foreign) trade |
|---|---|---|
| Area | Takes place within the boundaries of one country | Takes place between two or more different countries |
| Currency | Uses a single, common currency | Involves different currencies and exchange rates |
| Restrictions/duties | Generally free; no customs duties or major barriers | Subject to customs duties, tariffs, quotas and government restrictions |
| Mobility of factors | Labour and capital move fairly freely | Movement of factors is restricted by laws and borders |
| Distance & cost | Usually shorter distances, lower transport cost | Longer distances, higher transport, insurance and documentation costs |
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