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  1. If the commodities manufactured in Surat are sold in Mumbai or Delhi, then it is
    1. Territorial trade
    2. Internal trade
    3. International trade
    4. Free trade
Correct Option: B

Domestic trade, also known as internal trade or home trade, is the exchange of domestic goods within the boundaries of a country. This may be sub-divided into two categories, wholesale and retail. Wholesale trade is concerned with buying goods from manufacturers or dealers in large quantities and selling them in smaller quantities to others who may retailers or even consumers. Wholesale trade is undertaken by wholesale merchants or wholesale commission agents. The importance of domestic trade in a country is that it facilitates the exchange of goods within the country. By doing this it also makes sure that factors of production reach to the right places so that the economy of the country can grow. By allowing all different types of goods and services to reach to all parts of the country it improves the standard of living of the residents of the country as well as the employment rate of the country. And it helps the growth of an industry by ensuring the availability of raw materials.



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