Internal Trade (VSAQs)
Commerce-2 | 7. Internal Trade – VSAQs:
Welcome to VSAQs in Chapter 7: Internal Trade. This page includes the most important FAQs from previous exams. Each answer is provided in simple English and presented in the exam format. This approach helps you prepare effectively and aim for top marks in your final exams.
VSAQ-1: What is Internal Trade?
Internal Trade, also known as Domestic Trade or Home Trade, is all about the buying and selling of goods and services within the borders of a single country. Imagine you’re at a local market buying fruits and vegetables grown by farmers in your region. Both the sellers and buyers are from the same country, and the transactions are conducted in the local currency. Internal trade is the backbone of a nation’s economy, ensuring that products are available to consumers without the complications of international trade. This type of trade can be further divided into Wholesale Trade and Retail Trade, depending on the scale and nature of the transactions.
VSAQ-2: What is Wholesale Trade?
Wholesale Trade is like shopping in bulk but on a much larger scale. Imagine a grocery store owner who buys large quantities of products directly from the manufacturers. This is wholesale trade—buying goods in large quantities and then selling them in smaller amounts to retailers, who in turn sell them to individual customers. Wholesalers act as a crucial link in the supply chain, bridging the gap between producers and retailers, and making sure that products are available in the market. They help in keeping the distribution process smooth and efficient.
VSAQ-3: What are Hawkers and Pedlars?
Hawkers and Pedlars are like mobile stores that come to your doorstep. Imagine someone pushing a cart filled with fresh flowers, vegetables, or household items, calling out to people to buy their goods. These vendors don’t have fixed shops; instead, they move from one place to another, offering convenience to customers by bringing products directly to them. Hawkers and pedlars often sell affordable, unbranded goods and are a common sight in many neighborhoods, making shopping easy and accessible.
VSAQ-4: Who are Cheap Jacks?
Cheap Jacks are like traveling merchants who set up temporary shops or stalls in different locations. Imagine a trader who rents a small space in a busy market for a few months, selling low-cost items like clothes, toys, or kitchenware. If business is slow, they might pack up and move to a new spot where they can attract more customers. Cheap Jacks are adaptable and always on the lookout for better opportunities, offering their goods at competitive prices wherever they go.
VSAQ-5: What are Second-Hand Goods Shops?
Second-Hand Goods Shops are stores where you can buy used items at a fraction of the price of new ones. Imagine a shop filled with old books, vintage furniture, or second-hand electronics. These shops are perfect for bargain hunters looking for unique items or for those who want to save money by buying pre-owned goods. Second-hand shops give products a second life, making them budget-friendly options for customers.
VSAQ-6: What are Second’s Shops?
Second’s Shops are places where you can buy items that have minor defects at a discounted price. Imagine finding a slightly scratched dining table or a shirt with a small stitching error being sold at a lower cost. These products are perfectly usable but are sold at reduced prices because of their imperfections. Second’s shops are popular among budget-conscious consumers who don’t mind a few flaws in exchange for saving money.
VSAQ-7: What are Multiple Shops?
Multiple Shops, also known as Chain Stores, are like a network of stores owned by the same company that you can find in different locations. Imagine a brand like Bombay Dyeing, which has several retail outlets selling the same products across various cities. These shops maintain a consistent brand image and offer standardized products, making it easy for customers to find what they need, no matter which branch they visit. Multiple shops provide convenience and reliability, as customers know they can expect the same quality and service at any of the chain’s locations.