Retail \ 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 boundary of a country.
As discussed there are two types of Home Trade, Wholesale Trade and Retail Trade.
(i) Wholesale Trade: this is the act of buying goods in bulk or in large quantities from the producer and re-sell to retailers in small quantities. The wholesaler is the person that does this and he is an intermediary between the producer and the retailer.
Some of the features of these types of trade are;
(a) Breaking of bulks
(b) Sales of goods to retailers in small quantities
(c) They are the link between the producers and retailers
The Wholesaler: This is a trader who buys from the manufacturer in large quantities and makes it available in small quantities to the retailers in order to make a profit.