difrence between internal and external trade - Business Studies - Internal Trade

Question

difrence between internal and external trade

Shvetika Sharma · Accepted Answer

Dear student,

The following points highlight the difference between internal
trade and external trade

Internal
Trade
External
Trade

It refers to the trade that takes place within the
domestic/national boundaries of a country
It refers to the trade that takes place across the boundaries
of a country

Herein, trade has to be as per the rules, regulations of one
country (concerned country)
Herein, trade is subject to the rules and regulations of
various countries

Herein, only domestic currency would be used
Herein, currency of various countries would be used

It involves a comparatively lower risk
It involves high risk

Herein, cash or cheque are used as modes of payment
Herein, transactions related to payment are done through banks
or bills of exchange

Regards

Internal Trade	External Trade
It refers to the trade that takes place within the domestic/national boundaries of a country.	It refers to the trade that takes place across the boundaries of a country.
Herein, trade has to be as per the rules, regulations of one country (concerned country)	Herein, trade is subject to the rules and regulations of various countries.
Herein, only domestic currency would be used.	Herein, currency of various countries would be used.
It involves a comparatively lower risk.	It involves high risk.
Herein, cash or cheque are used as modes of payment.	Herein, transactions related to payment are done through banks or bills of exchange.