Page 177 - Social Studies 7

Lesson Trade Activities
7.4

Dubai's world class physical infrastructure has already
FACTS established it as a major player in terms of trade, tourism
to Understand and as the leading conference and exhibition venue in
this part of the world.
Abdul Azil Al Ghurair

In the previous lesson you have learn about agriculture and industrial activities
which are the basic needs for trade activities. If agriculture and industries are
good but trade and business are limited then the economy of a nation cannot be
enhanced. Therefore, trade is another important economic activity which helps to
grow the nation's economy.
A process of buying and selling of goods and services between and among the
people or the nation is called trade. It is based on demand and supply. Trade plays
an important role in the economic development of a country. It is the exchange of
goods and services with the aim of earning profit. A country imports the necessary
materials which are not produced in the country and exports the surplus products.
For example, Nepal imports salt, medicine, machinery items, electrical appliances,
etc. and exports herbs, tea, raw, materials, etc. To do trading of various goods with
two or more countries is called trade diversification. It is very essential to get the
quality products in affordable rate. Trade is mainly catagorized into two parts.

i. Internal Trade
ii. External Trade

i. Internal Trade
It is also called domestic trade. The trading activities done within the
country is called internal trade, for example, selling of apples of Jumla in the
Terai and selling rice from the Terai to mountainous region or the hilly region is
called internal trade.

ii. External Trade
The import and export of goods between two countries is called external
trade. It is also known as international trade. For example, buying machinery
items from Japan or exporting carpets to Germany from Nepal.

177 Dynamic Social Studies and Population Education - Book VII