Q.Distinguish between Internal Trade and External Trade. (Any two points)

Internal and External Trade differ mainly on geographical scope and currency used — a distinction worth stating precisely rather than vaguely as "local vs foreign."

Point 1 — Geographical area: Internal Trade (Home Trade) is carried on entirely within the boundaries of one country — e.g. a wholesaler in Chennai selling to a retailer in Madurai. External Trade (Foreign Trade) is carried on between two or more different countries — e.g. an Indian exporter selling to a buyer in another country.

Point 2 — Currency/foreign exchange: Internal Trade is transacted entirely in the country's own domestic currency. External Trade necessarily involves foreign exchange, since the buyer and seller are usually based in countries using different currencies, and payment must be converted or settled across that difference. …