Distinguish between the following

1) Internal trade and International trade.
Ans:

Basis	Internal trade	International trade
Meaning	Internal trade refers to the buying and selling of goods within the geographical limits of a country.	International trade refers to the buying and selling of goods beyond the geographical limits of a country.
Countries Involved	Only one country is involved.	Minimum Two countries are involved.
Currency	Payments are made and received in-home currency only.	Payment is made and received in mutually agreed foreign currency only.
Risk	Less degree of risk is involved	High degree of risk is involved, such as transit risk, risk of fluctuation of currency and demand, etc
Government Restrictions	Internal trade is not restricted, except on a few goods.	International trade is strictly monitored by the government and prior approval is required before international transactions.

2) Trends in imports and Trends in exports of foreign trade.
Ans:

3) Balance of payments and Balance of trade.
Ans:

Basic for comparison	Balance of payments	Balance of trade
Meaning	Balance of Payment is a statement that keeps track of all economic transactions done by the country with the remaining world.	Balance of Trade is a statement that captures the country’s export and import of goods with the remaining world.
Records	Transactions related to both goods and services are recorded.	Transactions are related to goods only.
Result	Both the receipts and payment sides tallies.	It can be Favorable, Unfavorable, or balanced.
Capital Transfers	Balance of Payment is included.	The Balance of Trade is not included.
Component	Current Account and Capital Account.	It is a component of the Current Account of Balance of Payment.