Q.Trade carried on within the boundaries of one country is known as:

The classification of trade is based on whether or not a national boundary is crossed. Trade confined entirely within one country's own borders is treated as one specific category with its own name.

External, entrepot, and export trade all necessarily involve crossing a national boundary, so none of them fits a transaction confined to one country.

The question asks specifically about trade confined within the boundaries of a single country, so each option needs to be checked for whether it involves crossing a national border or not.

Option (a), External trade, is by definition trade carried on between two or more different countries — it always involves crossing a boundary, so it cannot describe trade confined to one country.

Option (b), Entrepot trade, is a specific sub-type of external trade where a country imports goods purely to re-export them to a third country. This clearly involves at least two boundary crossings, so it is not the answer either.

Option (c), Internal trade, is defined precisely as trade carried on within the geographical boundaries of one country, using the domestic currency and domestic laws, without any customs duty because no border is crossed. This matches the question exactly.

Option (d), Export trade, is a sub-type of external trade involving the sale of goods to a buyer in another country — again, a boundary is crossed, so this cannot be the answer.

Having ruled out (a), (b) and (d) as all necessarily crossing a national boundary, (c) is the only option that correctly describes trade confined within one country.

Students sometimes confuse 'internal' with 'entrepot' because both sound like they could involve movement inside a system; remember entrepot is entirely an external-trade concept involving two countries, never a domestic one.