Trade is the final state of business activity and involves selling and purchasing of products. It is the activity of buying, selling, or exchanging goods or services between people, firms, or countries. It facilitates the transfer of goods from the seller to the buyer that all the other activities are undertaken. According to the Dictionary of Trade & Commerce, “Trade means the final stage of business activity involving sale and purchase of goods and services. It is to facilitate the transfer of goods and services ices from the seller to the buyer.” Trade has been classified in many ways. The normal classification of trade is as follows:
(a) Domestic trade and,
(b) Foreign trade or international trade.
Domestic trade, in turn, may be either wholesale trade or retail trade and foreign trade may be imported trade or export trade. Domestic trade is also known as home trade or internal trade comprising buying and selling of goods within the hounds of a country. Foreign trade refers to buying goods from or selling commodities to traders doing business in outside of the country or in foreign lands.