Trade is the exchange of goods and services. Or it could be defined as the buying and selling of goods and services.
Types of Trade
1. Internal or Home Trade: This is the exchange of goods and services within a country e.g. exchange of goods between a person from Owerri and a person from Onitsha or Enugu.
2. External or Foreign Trade: This is the type of trade (i.e. exchange of goods and services) outside the country. It is a trade that involves different countries. Foreign trade may be bilateral (involving two countries only) or multilateral (involving many countries) Foreign trade consists of imports and exports.
a. Imports are goods brought into a country from other countries e.g. Nigeria imports goods like Motorcars, Lorries, Buses, Aeroplane, Electronic gadgets – Radio, TV, Video, Fan etc. Taxes levied on imported goods are called import duties.
b. Exports are goods sent out of a country to other countries e.g. Nigeria exports goods like crude oil, palm produce, Rubber, groundnut, cotton, cocoa, kolanut etc. Taxes levied on exported goods are called export duties.