Internal and International Trade
NCERT Class 10 • Contemporary India II • Chapter "Lifelines of National Economy" | NCERT Class 12 • Fundamentals of Human Geography • Chapter "International Trade"
Internal and International Trade
Trade is the exchange of goods and services between people, states or countries. Trade within a country is internal or domestic trade; trade between countries is international trade. International trade is considered an index of a country's economic prosperity because it reflects what it can produce and what it must buy.
Exports, Imports and Balance
- Export means goods sold to another country; import means goods bought from another country.
- The sum of exports and imports is the country's total volume of trade.
- Balance of trade is the difference between the value of exports and imports.
- A favourable balance means exports exceed imports; an unfavourable or adverse balance means imports exceed exports.
- India's main exports include engineering goods, petroleum products, gems and jewellery, chemicals, textiles, agricultural products and software services.
- India's main imports include crude petroleum, machinery, electronic goods, gold, fertiliser and edible oil.
- Trade with other countries happens by sea, air, land routes and, for services like software, through telecom links.
Internal Trade and Tourism
- Internal trade moves food grain, cloth, cement, coal and consumer goods between surplus and deficit regions.
- Good transport, storage, banking and market information are what make internal trade efficient.
- Tourism is treated as a form of trade and is called invisible trade because it earns foreign exchange without goods crossing the border.
- Tourism supports handicrafts, hotels, transport and guides, so it creates wide local employment.
- India attracts visitors for heritage, eco tourism, medical treatment, business and pilgrimage.
- Trade fairs, wholesale markets and mandis are the traditional institutions of internal trade.
- Weak storage and poor roads raise the cost of internal trade and hurt farmers the most.
- Trade between neighbouring countries by land route is usually cheaper than long sea routes.
| Term | Meaning |
|---|---|
| Export | Goods sold to another country |
| Import | Goods bought from another country |
| Balance of trade | Value of exports minus imports |
| Invisible trade | Trade in services such as tourism and software |
Balance of trade — the difference between the value of a country's exports and its imports of goods.
Exam me kaise aata hai
- Exports minus imports gives — balance of trade
- When exports exceed imports the balance is — favourable
- Tourism is called which kind of trade — invisible trade
- Sum of exports and imports is called — total volume of trade
UPSC/State PSC ke liye
- A large crude petroleum import bill makes India's trade balance sensitive to world oil prices, which is why energy policy is also trade policy.
- Software and other service exports partly offset the goods trade deficit, which is why the current account picture differs from the goods balance alone.
Yahan confuse hote hain
✗ Import means selling goods abroad | Import means buying from abroad; export is selling | ✓
✗ Unfavourable balance means low total trade | It means imports exceed exports | ✓
✗ Tourism is not trade | Tourism is invisible trade and earns foreign exchange | ✓
Ek nazar me
- Trade is internal or international.
- Export sells abroad, import buys from abroad.
- Balance of trade is exports minus imports.
- Tourism is invisible trade and a large local employer.
Ab practice karein
Parivahan, sanchar aur vyapar se seedhe factual questions bante hain. ExamAtlas ke mock test se apni taiyari abhi jaanchein.