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Chapter Analysis
Intermediate30 pages • EnglishQuick Summary
This chapter on Internal Trade discusses the meaning and nature of internal trade, which refers to the buying and selling of goods and services within a nation's boundaries, without levying customs or import duties. It explores two main categories of internal trade—wholesale and retail—and highlights the significant role of wholesalers and retailers as marketing intermediaries. The chapter also delves into the services provided by wholesalers and retailers, the importance of different types of retailers, and the role of Chambers of Commerce in promoting trade efficiency and infrastructure development.
Key Topics
- •Internal Trade
- •Wholesale Trade
- •Retail Trade
- •Role of Wholesalers
- •Functions of Retailers
- •Chambers of Commerce
- •Types of Retailers
- •Implementation of GST
Learning Objectives
- ✓Describe the meaning and types of internal trade
- ✓Specify the services of wholesalers to manufacturers and retailers
- ✓Explain the services of retailers
- ✓Classify the types of retailers
- ✓Explain the forms of small scale and large scale retailers
- ✓State the role of Chambers of Commerce and industry in the promotion of internal trade
Questions in Chapter
What is meant by internal trade?
Page 243
Specify the characteristics of fixed shop retailers.
Page 243
What purpose is served by wholesalers providing warehousing facilities?
Page 243
How does market information provided by the wholesalers benefit the manufacturers?
Page 243
How does the wholesaler help the manufacturer in availing the economies of scale?
Page 243
Distinguish between single line stores and speciality stores. Can you identify such stores in your locality?
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How would you differentiate between street traders and street shops?
Page 243
Explain the services offered by wholesalers to manufacturers.
Page 243
What are the services offered by retailers to wholesalers and consumers?
Page 243
Itinerant traders have been an integral part of internal trade in India. Analyse the reasons for their survival in spite of competition from large scale retailers.
Page 244
Discuss the features of a departmental store. How are they different from multiple shops or chain stores.
Page 244
Why are consumer cooperative stores considered to be less expensive? What are its relative advantages over other large scale retailers?
Page 244
Imagine life without your local market. What difficulties would a consumer face if there is no retail shop?
Page 244
Explain the usefulness of mail orders houses. What type of products are generally handled by them? Specify.
Page 244
Additional Practice Questions
Explain the role of Chambers of Commerce in the development of internal trade.
mediumAnswer: Chambers of Commerce play a significant role in strengthening internal trade by interacting with government agencies to improve infrastructure, streamline tax policies, and promote efficient movement of goods. They also help in formulating policies to reduce trade barriers and ensure fair practices in the market.
What are the essential characteristics of retail trade?
easyAnswer: Retail trade is characterized by selling goods in small quantities, directly to the ultimate consumers. It aims to meet the daily needs of consumers and is marked by a wide variety of products, convenience, and personalized service.
Discuss the differences between itinerant retailers and fixed shop retailers.
mediumAnswer: Itinerant retailers are mobile and do not have a fixed place of business, often dealing with low-cost everyday items, while fixed shop retailers operate from a permanent location and offer a wider range of goods, often providing better after-sales services.
How does GST impact internal trade?
mediumAnswer: GST simplifies the tax structure by replacing multiple indirect taxes with a single tax, reducing the cascading effect of taxes, promoting transparency, and making it easier for businesses to operate across state lines without the burden of excessive compliance.
Identify and describe the functions of wholesalers in the marketing system.
hardAnswer: Wholesalers act as intermediaries between manufacturers and retailers. They facilitate bulk purchasing, provide storage solutions, extend credit, offer marketing support, and allow manufacturers to focus on production rather than distribution logistics.