Topic: The Differences Between Home Trade And Foreign Trade
First of all let’s define home trade and foreign trade before listing out the differences.
Home Trade: Home tradeis the act of buying and selling goods and services within a geographical area of a nation. It can be referred to domestic or internal trade. Goods are sold within the country hence the same currency is used.
Foreign Trade: Foreign trade is the buying and selling of goods and services beyond the geographical boundaries of a country or between one country and the other. Foreign trade is also referred to as international trade and can be bilateral and multilateral. It involves the use of different countries.
7 Differences Between Home Trade And Foreign Trade
1. On foreign trade goods are moved beyond geographical boundaries While on home trade goods are moved in the same country.
2. Different currencies are used on foreign trade While one currency is used on home trade.
3. Foreign trade has language barrier While in home trade there is no language barrier.
4. Transport cost is high on foreign trade While transport cost is low on home trade.
5. Foreign trade has difference social standards, rules and regulations in use While home trade has same social standard rules and regulations.
6. Different weight and measure are use in foreign trade While home trade use the same weight and measures.
7. More complex documentation are required in foreign trade While home trade requires less document.