Internal trade uses rupee as the currency.

Import trade means buying goods from a Foreign Country for domestic use. Example, India imports petroleum products from Gulf Countries.

On the basis of geographical location of buyers and sellers, trade can be broadly classified into two categories;
1) Internal Trade
2) External Trade

The buying and selling of goods and services consists of trade. The essence of trade is to make goods and services available to those persons who need them and are able and willing to pay for them.

1. The essence of trade is to make goods and services available to those persons who need them and are able and willing to pay for them.
2. Trade is conducted in order to earn profit.
3. Trade acts as an intermediary in exchange of commodities between the producer and consumer.

Wholesale Trade:
"Purchase of goods in bulk from the manufacturers and selling them in smaller quantities to other intermediaries" is known as wholesale trade.

Types of Foreign Trade:
i. Import Trade
ii. Export Trade

Types of Foreign Trade :
A. Import Trade:
Import trade means buying goods from a foreign country for domestic use.
Example:
1. India imports petroleum products from Gulf Countries.
2. India imports machinery, equipment, materials, etc.
3. It is necessary to speed-up industrialization, to meet consumer demands and to improve standard of living.
B. Export Trade:
Export trade means the sale of domestic goods to foreign countries.
Examples:
1. Export of Iron ore from India to Japan.
2. Selling of Tea from India to England.
3. Export of jasmine flowers from Madurai to Singapore.
Export trade is necessary to sell domestic surplus goods, to make better utilization of resources, to earn foreign exchange, to increase national income, to generate employment and to increase Government revenue.
India's important export and import items:

C. Entrepot Trade:
Entrepot trade means importing of goods from one country and exporting the same to foreign countries. It is also known as 'Re-export trade'. E.g. Indian diamond merchants in Surat import uncut raw diamonds from South Africa, they cut and polish the diamonds in their units in India and re-export them to the International Diamond Market in Amsterdam.