Identify and explain the concepts from the given illustrations
1) India purchased petroleum from Iran.
Ans: Concept: Import Trade – (Type of foreign trade)
a. Import trade refers to the purchase of goods and services by one country from another country or inflow of goods and services from a foreign country to the home country.
b. For example, India imports petroleum from Iraq, Kuwait, Saudi Arabia, etc.
2) Maharashtra purchased wheat from Punjab.
Ans: Concept : Internal Trade
Buying and selling of goods and services within the boundaries of a nation are referred to as ‘Internal Trade’ or ‘Domestic Trade’ or ‘Home Trade’.
3) England imported cotton from India, made readymade garments from it and sold them to Malaysia.
Ans: Concept: Entrepot trade
Explanation: The process of processing goods imported from one country and exporting them to another country is called entrepot trade.
4) Japan sells smart phones to Myanmar.
Ans: Concept : Export Trade.
Explanation: The sale of goods and services by one country to another country is called export trade.