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Difficulty: EasyMeaning and Classification of Trade

Trade is fundamentally categorized into home trade and foreign trade. Which of the following constitutes a major division of home trade?

  1. Wholesale tradeAnswer
  2. B
    Entrepôt trade
  3. C
    Warehousing
  4. D
    Export trade

Answer

Wholesale trade is a major division of home trade.
Wholesale trade involves buying goods in bulk from producers and reselling them in smaller lots to retailers within the same country, making it one of the two core branches of home trade.

Step-by-Step Solution

1
Identify the primary branches of trade.
Trade is broadly classified into home (domestic) trade and foreign (international) trade.
Classification depends on whether buying and selling occur within national boundaries or across international borders.
2
Categorize the components of home trade.
Home trade consists of wholesale trade and retail trade.
Wholesalers purchase goods in bulk from producers and sell to retailers, who distribute them to final consumers.

Key Concept

Classification of Home Trade
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Topics

Meaning and Classification of Trade

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