Distinguish between Internal Trade and International Trade.
| Point of Difference | Internal Trade | International Trade |
|---|---|---|
| 1. Definition | The business activity which is confined within the geographical boundaries of the country is called internal trade. | Business activity that extends beyond the fixed geographical boundaries of a country to other countries is called international trade. |
| 2. Scope | The scope of such trade is limited to one country. | The scope of such trade extends beyond national borders to different countries. |
| 3. Currency | This trade operates in local currency. | This trade operates in foreign currency. |
| 4. Nature of business | In this trade, buying and selling of goods are done in two ways, retail and wholesale. | In this trade, buying and selling of goods are done only in wholesale. |
| 5. Bank assistance | Such trade can run without the bank assistance. | Bank assistance is essential in such trade. Central Bank assistance and approval are required in matters relating to currency exchange rates. |
| 6. Law | In the case of internal trade, the trade can be carried out only if the law of the respective country is followed. | International trade requires compliance with the laws of multiple countries. |
| 7. Duty | Such trades are subject to excise duty and sales tax. | Only import and export duties are payable on such trade. |
| 8. Risk | In this type of trade, there is no risk of foreign exchange rate fluctuations. | Such trade involves risk to foreign exchange rate fluctuations. |
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