4. Types of trade
Trade may be classified on the basis of
1) Geographical area covered
2) Volume of trade transaction
On geographical basis trade may be
classified in to two like 1.Internal trade &
2.External trade.
On volume of trade basis trade is divided in
to two 1. Wholesale & 2. Retail trade
5. 1. Internal or Home trade
It refers to purchase and sale of
goods within the boundaries of a
country.
Wholesale trade: purchase and sale
of goods in bulk quantity and sell to
retailers at small quantity.
Retail trade: selling of goods by the
retailer to the customer
8. Import & Export trade
• A product that is transferred or sold from a party in one country to a
party in another country is an export from the originating country,
and an import to the country receiving that product.
• Imports and exports are accounted for in a country's current account
in the balance of payments.
• Exporting is the sale of products and services in foreign countries that
are sourced or made in the home country. Importing refers to buying
goods and services from foreign sources and bringing them back into
the home country.
9. Entrepôt
• Entrepôts were especially relevant in the Middle Agesand in the early modern
period, when mercantile shipping flourished between Europe and its colonial
empires in the Americas and Asia.
• For example, spice trade in Europe, coupled with the long trade routes necessary
for their delivery, led to a much higher market price than the original buying
price.
• Traders often did not want to travel the whole route, and thus used the entrepôts
on the way to sell their goods.
• This could conceivably lead to more attractive profits for those who were suited
to travel the entire route. The 17th-century Malta, Amsterdam Entrepôt provides
an example of such an early-modern entrepôt.
• The term is still used to refer to duty-free ports with a high volume of re-
export trade. Entrepôt also means "warehouse" in modern French, and is derived
from Latin roots inter "between" + positum "position", literally "that which is
placed between."
12. MALTA Entrepôt
•In 1869, the opening of the Suez Canal benefited
Malta's economy greatly as there was a massive
increase in the shipping which entered in the port. The
economy had entered a special phase.
The Mediterranean Sea became the "world highway of
trade" and a number of ships called at Malta
for coal and various supplies on their way to the Indian
Ocean and the Far East. From 1871 to 1881, about
8,000 workers found jobs in the Malta docks and a
number of banks opened in Malta. By 1882, Malta
reached the height of its prosperity.
14. BUSINESS ACTIVITIES
INDUSTRY COMMERCE
Trade
Aidsto Trade
Hometrade;
1)Retail trade
2) wholesale
trade
Foreigntrade 1
import
2 export
3 Entrepot
Transport
Warehousing
Insurance
Banking
advertising
1 EXTRACTIVE
2 GENETIC
3 MANUFACTURING
4 CONSTRUCTION
15. Manufacturing industry may
assume the following forms
(a) Analytical industry: In analytical industry, the raw
material is broken down into several useful materials.
For example, an oil refinery separates crude oil into
kerosene, gasoline, diesel oil, and petrol, etc. Petroleum
refining is anexample of analyticalindustry.
(b)Synthetic industries: are those industries
which combines various ingredients and make
a new product. For example. Cement,
fragrance industry etc. Two or more materials are mixed
together in the manufacturing operations to obtain some new
products.like soap,cement etc
16. ANALYTICAL INDUSTRY
For example, an Oil Refinery separates crude oil into Kerosene,
Gasoline, Diesel oil, and Petrol, etc.
Petroleum refining is anexampleof AnalyticalIndustry.
17. Petroleum Refinery
Cement Industry
Mysore Sandal Soap Industry
SYNTHETIC INDUSTRY
Two or more materials are mixed together in the
manufacturing operations to obtain some new products.
Like Soap, Cement
18. Manufacturing industry may assumethe
following forms
Processing industry:
Raw materials are processed through a series of
manufacturing operations making use of analytical
and synthetic method)- textile, sugar and steel.
Assembly line industry:
in assembly industry, the finished products can be
produced only after various components have
been made and then brought together for final
assembly. Automobile, watches, television are
examples