NCERT Class 11 Business Studies Internal Trade

Read and download NCERT Class 11 Business Studies Internal Trade chapter in NCERT book for Class 11 Business Studies. You can download latest NCERT eBooks for 2021 chapter wise in PDF format free from This Business Studies textbook for Class 11 is designed by NCERT and is very useful for students. Please also refer to the NCERT solutions for Class 11 Business Studies to understand the answers of the exercise questions given at the end of this chapter



Trade refers to buying and selling of goods and services with the objective of earning profit. Mankind has been engaged in trading, in some form orthe other, since early days of civilisation. The importance of trade in modern times has increased as new products are being developed every day and are being made available for consumption throughout the world. No individual or country can claim to be self-sufficient in producing all the goods and services required by it. Thus, each one is engaged in producing what it is best suited to produce and exchanging the excess produce with others. On the basis of geographical location of buyers and sellers, trade can  broadly be classified into two categories(i) Internal trade; and (ii) External trade. Trade which takes place within a country is called internal trade. Trade between two or more countries, on the other hand, is called external trade. The present chapter discusses in detail the meaning and nature of internal trade and explains its different types and therole of chambers of commerce in promoting internal trade.


Buying and selling of goods and services within the boundaries of a nation are referred to as internal trade. Whether the products are purchased from a neighbourhood shop in a locality or a central market or a departmental store or a mall or even from any doorto- door salesperson or from an exhibition, all these would be considered to be examples of internal trade as the goods are purchased from an individual or establishment within a country. No custom duty or import duty is levied on such trade as goods are part of domestic production and are meant for domestic consumption. Generally, payment has to be made in the legal tender of the country or any other acceptable currency.


Short Answer Questions

1. What is meant by internal trade?

2. Specify the characteristics of fixed shop retailers.

3. What purpose is served by wholesalers providing warehousing facilities?

4. How does market information provided by the wholesalers benefit the manufacturers?

5. How does the wholesaler help the manufacturer in availing the economies of scale?

6. Distinguish between single line stores and speciality stores. Can you identify such stores in your locality?

7. How would you differentiate between street traders and street shops?

8. Explain the services offered by wholesalers to manufacturers.

9. What are the services offered by retailers to wholesalers and consumers?

Long Answer Questions

1. 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.

2. Discuss the features of a departmental store. How are they different from multiple shops or chain stores 

3. Why are consumer cooperative stores considered to be less expensive? What are its relative advantages over other large scale retailers?

4. Imagine life without your local market. What difficulties would a consumer face if there is no retail shop?

5. Explain the usefulness of mail orders houses. What type of products are generally handled by them? Specify.

Please refer to attached file for NCERT Class 11 Business Studies Internal Trade



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