Relationship among the different types of trade. - SS1 Commerce Past Questions and Answers - page 1

Home trade supports the domestic economy, while foreign trade involves exchange between different countries.

Home trade and foreign trade are the same concepts and can be used interchangeably.

Home trade focuses on the import of goods, while foreign trade focuses on the export of goods.

Entrepot trade promotes specialization within a country's domestic market.

Entrepot trade facilitates the smooth flow of goods between countries engaged in foreign trade.

Entrepot trade hinders the exchange of goods and creates trade barriers.

Home trade

Foreign trade

Entrepot trade

To promote cultural exchange between countries

To facilitate the exchange of goods and services between different countries

To create trade barriers and protect domestic industries

By restricting trade with other countries and protecting domestic industries

By focusing on the import of goods and services