ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Trade barrier is often likely to appear when trading
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Different payment is concerned to be a case
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Transporting risks cause greater loss to international trade than domestic trade
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International trade refers to different countries while domestic trade refers to different regions
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Detailed explanation-1: -International trade refers to the exchange of goods and services between countries and across borders, and it is called that. When this business is done inside a country’s borders, it’s called domestic trade.
Detailed explanation-2: -Area of operation: Domestic trade operates within the home country, while international trade activities are spread across the globe. Different currencies: International businesses deal with multiple currencies and the fluctuation of exchange rate can affect the profitability of your business.
Detailed explanation-3: -Interregional trade refers to trade between regions within a country. It is what Ohlin calls inter-local trade. Thus interregional trade is domestic or internal trade. International trade on the other hand, is trade between two nations or countries.
Detailed explanation-4: -When trade takes between states, cities or villages within a city, it is known as local trade which does not impact the value of the national currency. whereas when trade takes place between two countries, it is known as international trade which impacts the value of national currency.
Detailed explanation-5: -The exchange of goods between different countries of the world is known as International Trade. Those business activities that take place beyond the geographical boundaries of a nation, but also include movement of capital, personnel, technology and intellectual property, are called International Business.