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Internal Trade

Buying and selling of commodities and services within the country is referred to as internal trade. Whether the products are bought from a neighborhood store in a location or a central market or a departmental store or a mall or even from any door to- door salesperson or from an exhibition, all these are examples of internal trade as the commodities are bought from an individual or establishment within a country. No custom duty or import duty is levied on this type of trade as commodities are a part of domestic production and are intended for domestic consumption. Normally, payment is made in the legal tender of the country or any other appropriate currency. Internal trades are categorized into two broad groups' viz.,
  1. wholesale trade and
  2. retail trade.
Usually, for products, which are suppose to be distributed to a large number of buyers locating over a wide geographical area, it's very difficult for the producers to reach these buyers directly. For example, if vegetable oil or bathing soap or salt is being produced in a factory in any part of the country are suppose to reach millions of buyers throughout the country, the aid of wholesalers and retailers becomes very necessary. Buying and selling of commodities and services in huge quantities, with the intention of resale or intermediate use is referred to as wholesale trade. On the other hand, buying and selling of commodities in comparatively less quantities, normally to the final consumers, is known as retail trade. Traders dealing in wholesale trade are known as wholesale traders while those who deal in retail trade are known as retailers. Both of them are required marketing intermediaries performing very necessary functions in the process of exchange of commodities and services between producers and users or final consumers. Internal trade intends at equitable distribution of commodities within a country very fast and at reasonable cost.

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