TRADE

CONTENT

1. Meaning and importance of Trade
2. Forms of Trade: Home Trade, Foreign Trade;
3. Aids to Trade: Banking, Insurance, Advertising, Communication, Transportation, Tourism, etc.
4. Role of Custom and Excise in Foreign Trade

Meaning of Trade

Trade can be defined as the process of buying and selling of goods and services. When one thing is exchanged for another, trade can be said to have taken place.

Importance of Trade

1. Trade helps the producer to sell his/her goods to the consumer.
2. Trade allows the consumer to have a variety of goods to choose from.
3. It makes it possible for consumers to enjoy goods and services from other countries.
4. It can lead to improvement in the standard of living of people.
5. Good provided in surplus in one area are able to get to where it is not available.
6. Trade brings the buyer and the seller together
7. Trade gives value to a nation’s

Forms of Trade

There are two forms/kinds of Trade namely:

1. Home Trade or Domestic Trade
2. Foreign Trade or External Trade

1.