What is Internal Trade?

Question 30 of 31

Q. What is Internal Trade?

Tamil Nadu DgeTamil Nadu HSC First Year (DGE) Commerce Board 2026Subjective· 2mImportance★★★★★

97% · 30/31 Questions

🔒 Locked · start free trial →

You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.

Start your 14-day free trial to unlock the full solution →

Internal trade is trade conducted within the boundaries of one country — goods and services are bought and sold in the home market, in the home currency, and it splits into wholesale and retail trade.

Internal trade, also known as home trade or domestic trade, refers to the buying and selling of goods and services within the geographical boundaries of a country. Both the buyer and the seller belong to the same country, payment is made in the home currency, and no customs duty or foreign-exchange formality is involved.

Internal trade is broadly classified into two types:

Wholesale trade — buying goods in large quantities from producers and selling them in smaller lots to retailers.
Retail trade — selling goods in small quantities directly to the final consumers. …

Start your 14-day free trial to unlock the full solution →

Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2025Set MARCH1 markMCQ
$Q. Choose the odd one out.$
(a) Import Trade
(b) Wholesale Trade
(c) Entrepot Trade
(d) Export Trade
›Reveal solutionSolution
Trade is internal or external. Import, export and entrepot trade are all external (foreign) trade, but wholesale trade is internal trade, so it is the odd one out.

Trade is broadly classified as:

Internal (home) trade — buying and selling within a country; it is subdivided into wholesale trade and retail trade.

External (foreign) trade — trade across national boundaries; it includes import trade, export trade and entrepot trade (re-export of imported goods). …
Start your 14-day free trial to see the full solution →
CBSE 2023Set MARCH1 markMCQ
$Q. Internal Trade can be classified into ______ categories.$
(a) Two
(b) Three
(c) Five
(d) Four
›Reveal solutionSolution
Internal trade can be classified into two categories, so the correct option is (a).

In the types of trade chapter of the Tamil Nadu HSC Commerce syllabus, trade is first divided into internal (home) trade and external (foreign) trade.

Internal trade (buying and selling of goods within a country) is classified into two categories:

Wholesale trade – buying in bulk from producers and selling to retailers. …
Start your 14-day free trial to see the full solution →
CBSE 2022Set MARCH1 markMCQ
$Q. The aim of home trade is ________.$
(a) To raise the national income
(b) To raise the standard of living
(c) To obtain all types of goods
(d) To provide the essential goods and services economically
›Reveal solutionSolution

The answer is option (d); the aim of home trade is to provide essential goods and services economically.

Home trade (also called internal or domestic trade) refers to the buying and selling of goods and services within the boundaries of a country. Its central purpose is to ensure the smooth distribution of goods produced within the nation so that consumers can obtain the essential goods and services they need at economical prices and at the right place and time. While a developed home trade may indirectly help raise national incom …

Start your 14-day free trial to see the full solution →

←Previous questionQ17 — (a) Distinguish between Wholesaler and Retailer. (any 5) OR (b) What i…→Next questionQ19 — Explain any three characteristics of wholesalers (any 3)

Q.What is Internal Trade?

Concept understanding — Trade

Q.What is Internal Trade?

🎓Unlock everything free for 14 days

Unlock everything free for 14 days