Question

Differentiate between International and Local trade.

Answer 1

Hint:
Trade which takes place within the country is local trade and trade which takes place outside the country is International Trade.

Complete answer:
Local trade or domestic trade is also known as internal trade.. Local trade is the trade which takes place within the border of the country. For example, a shampoo made in Indore is getting sold in Mumbai is a Local trade.

International trade on the other hand any business that takes place between two or more countries and the transaction taking place across the border is known as International trade. For example, India imports cotton from India to the United States of America then it is international trade as it is taking place between two countries.

These are the major difference between two of them:-

- International trade is done across the border of our country while domestic trade takes place within the border of our country.
- International trade always involves two or more countries in it while in domestic trade not more than one country can get involved.
- As the US dollar is the standard currency that is used across for international trade it refers to the international currency involved in it while in domestic trade local currency is used in trading.
- International trade is always controlled by a body while domestic trade is not subjected to any sort of control from them.

Note:
Both types of trade play an important role in the economy to keep a balance as at no point the domestic trade should fall or rise and same in the case of international trade as it may hamper the economy of the country.