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Q.

A trade that is carried out between two countries is called


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a

Internal trade

b

External trade

c

Both (1) and (2).

d

None of the above.  

answer is B.

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Detailed Solution

External trade is a trade practice between two countries. External trade involves the import and export of products. Importing refers to the process of buying products from another country. Exporting refers to selling products out of the country. External trades are done by transporting products in ships and aeroplanes for maintaining their safety and transporting in bulk. External trade plays a vital role in the development of a country as one country could import the things not available in his country. For example- trade between India and China.
 
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