The original form of trade was:

Barter. Direct exchange of goods and services.

Trade within a country is called:

Internal trade. Wholesale and retail trade are internal trade.

Importing goods for re-export is:

Entrepot trade. Entrepot trade means re-exporting imported goods.

Hawkers and peddlers are:

Itinerant retailers. They move from place to place.

A departmental store is a:

Large-scale fixed shop retailer. Departmental stores, supermarkets and chain stores are large-scale retailers.

Small-scale fixed shop retailer

Maharashtra State Board · HSC Commerce · Class 11 (Std XI)

Class 11 OCM Chapter 2: Trade

Short notes, key concepts, quick revision and practice MCQs with answers

Trade is the buying and selling of goods and services for profit, linking producers and consumers. It is classified as internal trade and external trade.

Key concepts: Trade

Meaning: The process of exchanging goods and services; its features are buying/selling for money's worth and transfer of ownership. The original form was barter.
Internal trade: Within the country: wholesale trade and retail trade.
External trade: Between countries: import (buying from abroad), export (selling abroad) and entrepot (importing to re-export).
Retail trade: Itinerant retailers (hawkers, peddlers, street traders, cheap jacks, market traders) and fixed shop retailers (small: general stores; large: departmental stores, supermarkets, chain stores, one-price shops).
Wholesale trade: Buying goods in bulk from producers and selling them to retailers.

Quick revision: important points

Trade develops the economy by linking producers with consumers.
Geographical Indication (GI) tag, e.g. Ratnagiri (Hapus) mango.
Entrepot = re-export of imported goods.

Practice MCQs with answers

The original form of trade was:
1. Barter
2. E-commerce
3. Credit card
4. Import
Show answer
Answer: A. Barter
Direct exchange of goods and services.
Trade within a country is called:
1. External trade
2. Internal trade
3. Entrepot
4. Export
Show answer
Answer: B. Internal trade
Wholesale and retail trade are internal trade.
Importing goods for re-export is:
1. Entrepot trade
2. Retail trade
3. Wholesale trade
4. Barter
Show answer
Answer: A. Entrepot trade
Entrepot trade means re-exporting imported goods.
Hawkers and peddlers are:
1. Fixed shop retailers
2. Itinerant retailers
3. Wholesalers
4. Importers
Show answer
Answer: B. Itinerant retailers
They move from place to place.
A departmental store is a:
1. Small-scale fixed shop retailer
2. Large-scale fixed shop retailer
3. Wholesaler
4. Hawker
Show answer
Answer: B. Large-scale fixed shop retailer
Departmental stores, supermarkets and chain stores are large-scale retailers.

All Class 11 OCM chapters

Class 11 OCM notes: all chapters