Types of Trade: - JSS1 Business studies Lesson Note

i. Home Trade:

Home trade, also known as domestic trade, refers to the buying and selling of goods and services within the borders of a single country.

a. Wholesale:

Wholesale trade involves the bulk purchase of goods from manufacturers or distributors at discounted prices. These goods are then sold in smaller quantities to retailers or other businesses for resale to consumers.

b. Retail Sale:

Retail trade involves the sale of goods and services directly to consumers for personal use. Retailers typically purchase products from wholesalers or manufacturers and sell them at higher prices to cover their costs and make a profit.

ii. Foreign Trade:

Foreign trade, also known as international trade, involves the exchange of goods and services between different countries.

a. Import:

Import trade refers to the purchase of goods and services from foreign countries for domestic consumption or resale. Imports can include raw materials, finished products, and even services.

b. Export:

Export trade involves selling goods and services to foreign markets. Businesses engage in export trade to expand their customer base, increase sales, and take advantage of international demand for their products.