Question.
What is meant by trade? What is the difference between international and local trade?
( Chapter - 7 Lifelines of the National Economy, Cass X NCERT Contemporary India -II )
Answer.
The exchange of goods between people, states, and countries is called trade. The market is the place where traditional trade used to take place, but now the trade is also done through the internet.
Difference between International trade and Local trade:
The following are the differences between international and local trade –
Trade that takes place between two countries is called international trade while local trade takes place within the country.
In general, international trade takes place through the Internet while local trade takes place through both the Internet and markets in cities, towns, and villages.
International trade is generally done through major international currencies like US Dollar and Euro while local trade is done through national currencies like Indian Rupee in India.
International trade can affect the national currency in both positive and negative ways while local trade does not affect the national currency.
International trade generally takes place through the sea, air, and land routes whereas local trade generally takes place through land routes in India.
The advancement of international trade in a country can bring economic prosperity while local trade brings social prosperity.
Export and import are the two major components of international trade while local trade does not have any such components.
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