Subject: Accountancy
The trade which is carried on between two or more countries is called foreign trade. It is conducted between the individuals or organizations of two or more countries. It is the international trade in which the payment is made in foreign currencies. It is divisible into import trade and export trade. The purchase of goods from a foreign country is called importing and the sale of goods to a foreign country is called exporting. The foreign trade exists because all types of goods necessary for human beings cannot be produced by a single country due to the lack of raw materials, skilled manpower, capital and technology.
What is foreign trade?
The trade which is carried on between two or more countries is called foreign trade. It is the international trade in which the payment is made in foreign currencies.
Why does the foreign trade exist?
The foreign trade exists because all types of goods necessary for human beings cannot be produced by a single country due to the lack of raw materials, skilled manpower, capital and technology.
Explain the documents used in foreign trade.
The following are the main documents of foreign trade:
What is a bill of lading?
A document used by the shipping company given to the exporter stating the type, quantity and condition of goods received for the carriage to a definite destination is called a bill of lading.
What do you mean by foreign trade? Explain its types.
The act of buying and selling of goods and services between the persons or parties of two or more than different countries is called foreign trade. Following are the three types of foreign trade:
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