Understanding Trade Types

What is import trade?

• Import trade is the selling of goods to foreign countries.

• Import trade is the buying of goods and services from foreign countries.

• Import trade refers to the exchange of services within a country.

• Import trade is the process of manufacturing goods domestically.

How does import trade benefit a country?

• Import trade restricts access to essential goods.

• Import trade benefits a country by providing access to a wider variety of goods, enhancing competition, lowering prices, and supporting economic growth.

• Import trade leads to a decrease in local job opportunities.

• Import trade increases the cost of living for citizens.

Give an example of a product that India imports.

• Cotton

• Wheat

• Rice

• Crude oil

What is export trade?

• Export trade is the exchange of services between two companies in the same country.

• Export trade is the sale of goods and services from one country to another.

• Export trade is the purchase of goods and services from another country.

• Export trade refers to the transportation of goods within a single country.

How does export trade contribute to a country's economy?

• Export trade isolates the country from global markets.

• Export trade decreases national income.

• Export trade boosts national income, creates jobs, promotes growth, and enhances global market presence.

• Export trade leads to job losses.

Name a product that Indian companies export.

• Electronics

• Automobiles

• Textiles

• Pharmaceuticals

What is entrepot trade?

• Entrepot trade is the import, storage, and re-export of goods.

• Entrepot trade refers to the manufacturing of goods.

• Entrepot trade is the sale of goods without storage.

• Entrepot trade is the direct export of local products.

How does entrepot trade differ from import and export trade?

• Entrepot trade is the same as direct sales to consumers.

• Entrepot trade only involves domestic transactions.

• Entrepot trade is a form of trade where goods are stored and re-exported, unlike import and export trade which involve bringing goods into or sending goods out of a country for consumption.

• Import and export trade is limited to raw materials only.

Provide an example of entrepot trade involving India.

• India exports spices directly to the United States.

• India imports textiles from Europe and re-exports to Africa.

• India serves as a hub for electronics trade with Japan.

• India serves as an entrepot for spices, importing them from countries like Indonesia and re-exporting to Europe.

What is the primary purpose of import trade?

• To reduce the cost of local labor.

• To increase domestic production of goods.

• To promote local businesses exclusively.

• To acquire goods and services not available domestically or at a lower cost.