There are two types of trade. They are:
(A) Internal trade,
(B) International trade

(A) Internal trade:

The trade that takes place among different regions but within the boundaries of a country is called internal trade.
Example:

• A trader of Gujarat buying woollen sweaters from Punjab.
• A kite maker of Surat selling his kites to a trader in Baroda.

From the perspective of distribution, internal trade can be divided into.

1. Wholesale trade and
2. Retail trade.

1. Wholesale trade:

• In wholesale trade a wholesaler purchases the goods in wholesale i.e. a very large quantity from the producer and sells it to various retailers as per their requirement.
• For example, a wholesaler may buy 500 electric fans from a manufacturing company and sell it to various retailers in quantities like 5, 7, 10, 50, etc. as per retailer’s need.
• Wholesaler serves as a link between producer and retailer.

2. Retail trade:

In retail trade, retailer purchases goods from wholeseller and sells the goods to the customers as per their need.

(B) International trade:

• Trade carried out for exchanging the goods or services between two countries is called international trade. Thus, international trade crosses boundaries of the country.
• For example, a Japanese company selling its televisions to India. An Indian trader selling its Kesar mango to an African trader.
• International trade consists of:
  (a) Import trade,
  (b) Export trade and
  (c) Re-export trade.