Difference between home trade and foreign trade

What are the difference between Home trade and Foreign trade?

Ans: The following are the difference between Home trade and Foreign trade;

S.No	Home Trade	Foreign Trade
1	It take place within the country boundary.	It takes place between two or more countries.
2	The people and business organizations of the same country are involved.	The people and business organizations of two or more countries are involved.
3	Little restriction in home trade.	Many restrictions in foreign trade.
3	Local currency is used for payment.	Foreign currency is used for payment.
5	Payment can be made through cash and bank.	Payment can be made through bank only.

Importance of Foreign Trade:

1. It helps to exchange the goods and services between different countries.
2. Exporting goods and services helps to earn foreign currency.
3. It promotes the indigenous products and services in other countries.
4. Relationship with other countries get enhances through foreign trade.

What are the different types of Foreign Trade?

Ans: The following are the different types of foreign trade;

1. Export trade: Sellings goods and services to another country is called export trade. The person or organization who sells goods or services to another country is called exporter.
2. Import trade: Purchasing the goods and services from other countries is called import trade. The person or organization who purchase goods or services from another country is called exporter.
3. Entreport trade: Importing the goods and services from one or more countries with a motive to export them to other countries is called entreport trade.

What are the documents used in foreign trade?

Ans: The following are the documents used in foreign trade;

a) Enquiry Letter

b) Reply Letter

c) Order Letter

d) Confirmation Letter

e) Invoice

f) Bills of lading

What are the documents used in foreign trade?

Ans: The following are the documents used in Home Trade;

a) Letter of enquiry

b) Quotation (Reply Letter)

c) Order Letter

d) Confirmation Letter

e) Receipt of goods

f) Invoice or bill