1. Trade is an act (or) process of buying selling or exchanging of goods and services.
Trade in general is of two types. They are Internal trade and International trade.
2. Internal Trade: Trade carried on within the domestic territory of a country.
3. International trade: Trade carried on between two or more countries.
4. Exports and imports are the two components of international trade.
5. The difference between value of exports and imports is called balance of trade.
6. If the value of exports exceeds the value of imports trade is said to be favourable balance of trade.
7. If the value of Imports exceeds value of exports it is said to be unfavourable balance of trade.
8. The value of currency of a country depends upon the balance of trade of that country.
