CBSE Class 11 – Business Studies – What is Foreign Trade? (#cbseNotes)

Class 11 – Business Studies
What is Foreign Trade?

Q1: What is a foreign trade?

Answer: Foreign trade is a trade between one country with another country. It involves the exchange of goods of one country with other countries. It is generally carried out by large business houses e.g. petroleum products of Gulf countries are sold in India.




Q2: What are different types of foreign trade?

Answer: Different types of foreign trades are:
1. Import Trade
2. Export Trade
3. Entrepot Trade



Q3: Define Import Trade?

Answer: Import trade means buying goods from a foreign country for domestic use. e.g. petroleum products of Gulf countries are sold in India.



Q4: What is an export trade?

Answer: Export trade means sale of domestic goods to foreign countries. e.g. export of iron ore from India to Japan.



Q5: What is entrepot trade?

Answer: Entrpot trade means buying goods from one country and exporting the same to other foreign countries. The country which carries on this trade is acting as collecting and distributing centre for certain special facilities like large warehouses, assembling and additional facilities. e.g. Singapore, Dubai.