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Trade in any country can be in two forms -- international and domestic trade. Domestic trade is trade carried between different markets within the country itself. In short trade between two states. International trade can be defined as trade between different nations. Both international and domestic trade is equally important for any nation.
Trade does generate a lot of money and this ca certainly helps a developing nation to great extent. As per the present scenario nations like China, the US, Russia, and Japan have achieved the top slot when it comes to international as well as domestic trade. Developed countries like Japan and the US are the market leaders. China is just behind them. However, this does not indicate that the other nations do not feature in the list. Trade completely depends on the availability of a certain commodity and the requisite demand for that.
International and domestic trade, both generate lot of income for any nation. In case of the US, international and domestic trade do help in opening up of new markets, creating employment opportunities and expanding the making of a commodity. Traders are involved in this process. The market can be further divided into different sections. Introduction of supermarkets, malls all contribute to domestic trade.
Manufacturers, wholesalers and retailers are the primary people involved in domestic trade. The reason it contributes to the economy in a great way is because there is less on government policies enlisted on them and the guarantee of payments is clear and prompt. International trading helps the government to earn foreign income. Goods that are scarce have an additional price on them and hence they enjoy the profits. The income earned can be used for various purposes. The money can be invested either for defense purpose, health care or for changing the lifestyles of people.
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