Relationship among the different types of trade. - SS1 Commerce Past Questions and Answers - page 1
What is the relationship between home trade and foreign trade?
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.
How does entrepot trade contribute to international trade?
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.
Which type of trade involves the exchange of goods within a single country?
Home trade
Foreign trade
Entrepot trade
What is the primary purpose of foreign 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
How does home trade support the local economy?
By promoting domestic production, employment, and economic growth
By restricting trade with other countries and protecting domestic industries
By focusing on the import of goods and services
Explain the relationship between home trade and foreign trade
What is the primary purpose of entrepot trade?