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Difficulty: MediumMeaning and Classification of Trade

In the classification of trade, wholesale trade and retail trade constitute the main divisions of foreign trade, while import, export, and entrepôt trade make up home trade.

Answer: Answer

Answer

False. Wholesale trade and retail trade are the main branches of home trade, whereas import, export, and entrepôt trade comprise foreign trade.
The statement is false because it interchanges the definitions: wholesale and retail trade form home (domestic) trade, while import, export, and entrepôt trade form foreign (international) trade.

Step-by-Step Solution

1
Analyze the primary branches of trade.
Trade is broadly classified into Home (Internal) Trade and Foreign (External) Trade.
Classification depends on whether trading occurs within national borders or across international boundaries.
2
Identify the components of Home Trade.
Home Trade consists of Wholesale Trade and Retail Trade.
Both activities involve buying and selling goods within the same country.
3
Identify the components of Foreign Trade.
Foreign Trade consists of Import Trade, Export Trade, and Entrepôt Trade.
These activities involve buying from, selling to, or re-exporting goods between different countries.
4
Compare the components with the assertion in the stem.
The statement incorrectly reverses the categories of home trade and foreign trade.
Since wholesale/retail belong to home trade and import/export/entrepôt belong to foreign trade, the statement is false.

Key Concept

Classification of Trade into Home and Foreign Branches
Estimated Time:45s
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Topics

Meaning and Classification of Trade

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