Internal takes place between the buyers and sellers in the same locality, village, town or city or indifferent states but with the same country.

TVS is engaged in export trade.

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

Vikram is engaged in export 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.

The government controls the import trade.
The objectives of import policy are:
(i) Proper use of foreign exchange,
(ii) Restrictions on imports of non-essential and luxury goods and
(iii) Developing indigenous industries.

Besides increasing national income, international trade is beneficial in many ways.
(a) The merits of International Trade are:
(i) It leads to specialisation when goods are produced at large scale.
(ii) Foreign trade enables a country to get those goods which it cannot produce.
(iii) Benefits of large-scale production are enjoyed.
(iv) Quality goods are produced and Prices are stabilized, employment opportunities increase and better international understanding takes place.
(b) The demerits of International Trade are:
(i) Foreign trade procedures are very complicated.
(ii) It leads to economic as well as political domination of the exporting country.
(iii) With the intention of earning more money natural resources may get exhausted and
(iv) It adversely effects home industry at small-scale.

1. Trade between two or more nations is called international trade or foreign trade.
2. Trade between two countries is called bilateral trade.
3. Trade among many countries is called multilateral trade. So, foreign trade may be bilateral or multilateral.
Need For International Trade:
Foreign trade increases the income of the country, natural resources are better utilized and the economic growth rate increases. It promotes development in science and technology.

Export trade means the sale of domestic goods to foreign countries.
Examples:
(i) Export of Iron ore from India to Japan.
(ii) Selling of Tea from India to England.
(iii) Export of Jasmine flowers from Madurai to Singapore.

Example:
i. Indian diamond merchants in Surat import uncut 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.
ii. India imports rubber from Thailand and export it to Japan.

The demerits of Foreign Trade are:
(i) Complicated procedure:
Export and import procedures are very complicated. A layman cannot understand them easily.
(ii) Economic dependence:
The underdeveloped country has to depend on the exporting country which leads to the exploitation of the developing country.
(iii) Adverse effect on the home industry:
International trade provides a threat to the smalland cottage industries at home. These industries cannot stand in competition to the developed countries products.
(iv) Import of harmful goods:
Import of luxury goods and harmful drugs hamper the well being of the people,
(v) World war:
Due to unhealthy competition, enmity among the countries may increase. This may lead to war between countries.
(vi) Political dependence:
It may make one country a slave of other country. Because economic dependence endangers the political stability of the dependent country.
(vii) Exhaust of natural resources:
With the intention of earning more money excessive use of natural resources may take place. This will cause the economic downfall of the country in the long run.

Merits of International Trade.
(i) Leads to specialization:
People trade because it is profitable. When goods are produced on large scale, it promotes the productive ability in terms of labor efficiency and other available resources. This, in turn, leads to. specialization and encourage the production of different types of goods in various countries.
(ii) Increase in consumption capacity:
Foreign trade enables a country to get goods which it cannot produce and enlarges a country's consumption capacity, increasing world output. In other words, trade is an 'Engine of Growth'.
(iii) Provides benefits of large-scale production:
Goods are produced for the world economy, hence resources are fully utilized and all the economies of  Large-Scale production are enjoyed by the producer country.
(iv) Stabilise prices and promote international equality:
Foreign trade equalizes the prices of goods throughout the world. With the help of E-commerce, information reaches every work and corner in a fraction of a minute. Foreign trade enables the consumer to get good quality products at lesser prices all over the world.
(v) Encourages fuller utilization:
Due to better production methods, every country can produce goods by fully utilization of installed capacity. Wastes are reduced. As a result cost of production falls and prices are cheaper.
(vi) Exchange of know-how and establishment of new industries:
A developed country can provide all types of technical know-how, machinery and equipment to the developing countries. This helps in the establishment of new industries in the importing countries.
(vii) Increase employment opportunities: 
The establishment of new industries under foreign collaborations create employment opportunities in the country.
(viii) Development of communication and transport facilities:
The International Trade brings people of different countries together, With the help of internet valuable information is exchanged between different countries. It also. leads to. the development of means of transportation.
(ix) Promotes International Understanding:
Better relationships among trading countries are established. This promotes mutual help, understanding of each other's problems and promotion of world peace.

Home trade consists of two main subdivisions namely
Wholesale trade:
"Purchase of goods In bulk from the manufacturers and selling them in smaller quantities to other intermediaries" IS known wholesale trade.
Retail Trade:
Retail trade deals with the distribution of goods in small quantities to the consumers.

Features of Internal Trade:
The following are the features of internal trade
1. The Buying and Selling of goods takes place within the boundaries of the same country.
2. Payment for goods and services is made in the currency of the home country.
3. It involves transactions between the producers, consumers and the middlemen.
4. It consists of a distribution network of middlemen and agencies engaged in  exchange of goods and services.
5. In home trade, the risk of transportation is very less when compared to Foreign Trade.
6. In home trade, the laws prevailing in that country only have to be followed.
7. The aim of home trade is to provide the goods and services economically.
8. Goods must be a part of domestic production.
9. Goods must be purchased from an individual or a firm established within a country.
10. Goods can be delivered using locally available modes of transports.
11. It does not involve any customs import duty, but buyers needs to pay the taxes like GST.