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MCQs · Q1

Q.Importing goods from one country for the specific purpose of re-exporting them to another country is known as:

(a) Import Trade
(b) Export Trade
(c) Entrepot Trade
(d) Internal Trade
Maharashtra MsbshseTextbookSubjectiveImportance★★★★★
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✓ Free question

Entrepot Trade (also called Re-export Trade) is exactly this: a country imports goods from one foreign country not to consume them domestically, but specifically to re-export them — often after minor processing, grading or repacking — to a third country, acting as a trading and distribution hub. Option (a), Import Trade, is only the buying-from-abroad half of the transaction and does not capture the essential re-export purpose. Option (b), Export Trade, is the selling-abroad half and, on its own, does not describe goods that were themselves imported for re-export. Option (d), Internal Trade, is trade conducted entirely within one country's own borders and has no foreign element at all, the opposite of what the question describes. Only option (c) precisely matches both the import-then-re-export sequence and the absence of domestic consumption described in the question.

✓Final answer

(c) Entrepot Trade — importing goods specifically to re-export them to a third country, without the goods being meant for the middle country's own consumption.

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