Trade : 

                The term trade refers to the sale, transfer or exchange of goods and services and constitutes the central activity around which the ancillary functions like Banking, Transportation, Insurance, Packaging, Warehousing and Advertising cluster.

1)  Internal or Domestic Trade
2)  International or Foreign Trade


 Internal or Domestic Trade

                                                It consists of buying and selling of goods within the boundaries of a country and the payment for the same is made in national currency either directly or through the banking system. 

International or Foreign Trade
       
                                                It refers to the exchange of goods and services between two or more countries. International trade involves the use of foreign currency ( called foreign exchange) ensuring the payment of the price of the exported goods and services to the domestic exporters in domestic currency, and for making payment of the price of the imported goods and services to the foreign exporter in that country’s national currency (foreign exchange).