NCERT Solutions for Class 11 Business Studies – Chapter 10 Internal Trade

NCERT books have practise questions to help students gauge their understanding of the concepts. To find out if students are heading in the right direction and have solved the questions correctly, they can refer to Class 11 NCERT Solutions for Chapter 10 Business Studies by Extramarks.

Students can access Class 11 Business Studies Chapter 10 NCERT Solutions on Extramarks’ website or app. The solutions are prepared by subject matter experts, who have ensured that every answer is correct and easy to understand.

Class 11 NCERT Solutions Business Studies 

Access NCERT Solutions for Class 11 Business Studies Chapter 10 – Internal Trade

Experts prepare the NCERT Solutions after extensive research. The solutions help the students understand the concept of internal trade with clarity and allow them to perform better in the examinations. 

The answers in the NCERT Solutions for Class 11 Business Studies help students to acquire a deep understanding of the topic. Students can download the Class 11 NCERT Business Studies Chapter 10 solutions on Extramarks website or app

NCERT Solutions for Class 11 Business Studies – Chapter 10 Internal Trade

Internal Trade and Its Types

Internal Trade refers to the buying and selling processes that take place within a country. Buying and selling at the local stores, shops, supermarkets, shopping malls, exhibition programs, fairs, etc., come under internal trade. 

No traditional import duties are imposed on the services and products which are meant to be sold under Internal Trade. Here are the primary characteristics of internal trade:

  • The buying and selling of products and services are supposed to happen within the boundaries of a country.
  • The payments are offered and received in the country’s currency.
  • The internal traders have to go through some nominal formalities to continue their business.

Internal Trade has Two Divisions 

The concept of trade has been divided into two categories: wholesale and retail trade.

Wholesale trade

Wholesale trade refers to the business in which the products are supplied to the retail traders and vendors in bulk. The ones, who operate the entire wholesale trade system, are known as wholesalers. They are the mediators between manufacturers and retailers. 

The wholesalers benefit both the manufacturers and the retailers. The services include:

Services to Manufacturer

  • Assist a large scale production
  • Carry the risk factors
  • Provide the manufacturers with financial assistance
  • Offer suggestions and advice to the manufacturers 
  • Keep watch on the current market scenario
  • Help the manufacturers in understanding the marketing function 
  • Support production continuity
  • Help in storage 

Services to Retailers 

  • Keep products available
  • Provide marketing support
  • Grant credit to the retailers
  • Offer valuable suggestions and advice to the small vendors
  • Share the market risk with retailers 

Retail trade

Retail trade is the sale of products to the end customers. Retailers purchase a small amount of products from the wholesalers and sell them to the customers. The retailers remain in constant touch with the customers and understand the customer’s demands and preferences. 

Functions of Chambers of Commerce and Industry in the Development of Internal Trade

The Chamber of Commerce is a business holders’ organisation of various traders and industrial sectors. The core objective of the Chamber of Commerce is to circulate the business interest of every member and generate rapid expansion of business and economic growth in a specific region, community, or country. The functions of the Chambers of Commerce include:

  • Conduct studies, collect statistics and relevant information about the current business and economic status.
  • Arrange for education and training programmes for the members. A few members even conduct commercial examinations and award diplomas.
  • Provide the members with technical, legal, and other significant information and guidelines.
  • Advise the authority in matters that concern the financial and industrial advancement of the location.
  • Conduct industrial exhibitions or trade fairs to promote business.
  • Provide the exporters with the certificates of origin.
  • Function as a conciliator to solve conflicts and disputes between the members.
  • Create a forum to discuss and talk about the everyday problems of the business people and resolve the issues immediately. 

Why should one choose Extramarks NCERT Solutions?

NCERT Solutions for Class 11 Business Studies Chapter 10 by Extramarks are a go-to guide for students looking for accurate answers to NCERT textbook questions of this chapter. As these solutions are prepared by subject matter experts, students can rely on them for accuracy. Moreover, it is ensured that the solutions are made as per the latest guidelines by the CBSE. 

FAQs (Frequently Asked Questions)

Trade refers to the commercial activities of buying and selling products or services within or outside the country. Finance is a crucial aspect of business as the core purpose of trading is to offer the best quality product or service in return for money. There are two kinds of trade: Internal Trade and External Trade.

When businesses purchase products from foreign lands, it is called import.

The primary documents required for internal trade are: 

  • Invoice – The seller supplies a statement to the buyers mentioning the relevant details of the product or service after the purchase. It is called invoice. The information includes quantity, quality, total value, tax, discount, etc. The statement is also called a bill or cash memo. 
  • Pro-Forma Invoice – A Pro-forma invoice is sent to the consignee from the consigner. It has the same information that is present in the invoice.

When products are imported by  a nation for export purposes, the process is called Entrepot.

A few terms associated with the business are cash on delivery, free on rail, etc.

Internal trade is of two types: wholesale and retail.

Wholesalers connect the manufacturers with the retailers. Wholesalers buy products from the manufacturers in bulk and sell the products to different retailers/vendors.

Wholesalers buy products from manufacturers and also provide warehouse facilities for distribution purposes. Wholesalers take the unknown risks of storage and products. The participation of the wholesalers encourages the manufacturer to enhance their production capability and let them face a lesser burden on storage facilities.