Distinguish between home trade and foreign trade?
When the goods are sold and purchased within the boundaries of a country, it is termed as home trade. Another name given to home trade is domestic trade. Many markets are located in cities, town and villages and such markets help in trading goods within a country. Small shops are located at places where one can easily and conveniently reach and buy the goods. Medical stores provisional stores, cloth stores etc, are few examples of such shops and they sell those goods which are produced in factories or in agricultural farms. Home trade takes place almost everyday because customers require.goods in order to fulfill their needs.
When the goods are sold and purchased across the boundaries of a country, it is termed as foreign trade. For example-consumers of USA get their supply of sugar and tea from other countries. A lot restrictions are there in case of foreign trade. Before import or export of the goods, it is important for a firm to take prior permission from Government authorities. One can make the payments only through bank in case of foreign trade. In foreign trades before the exporter accepts the money, money has to be converted from national currency given by the importer to foreign currency. It is possible for a country to avail goods which it cannot produce from other countries.