Home Trade

Definition of Trade:

Trade is defined as the buying and selling of both goods and services. Trade is made up of Home trade and Foreign trade (see diagram below).

Types of Trade:

There are two types of trade. Foreign Trade and Home Trade. In this lesson, we will be focusing on Home trade. We will discuss Foreign trade in the second term.

Definition of Home Trade:

This is the buying and selling of goods and services within a geographical area of a nation. It is divided into wholesale and retail trade. Home trade is also referred to as domestic or local trade or internal trade. This trade where a trader travels from Lagos to Kano is an example of home trade etc. It takes place within the boundaries of a country.

As discussed there are two types of Home Trade, Wholesale Trade and Retail Trade.