What is meant by internal trade?
Internal trade refers to the buying and selling of goods and services within the boundaries of a nation. Whether the products are purchased from a neighbourhood shop in a locality, a central market, a departmental store, a mall, a door-to-door salesperson, or from an exhibition, all these are 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. Internal trade can be categorised into two broad categories: wholesale trade and retailing trade.
Explanation
This is a 3-mark short answer question. The answer covers the definition of internal trade, provides examples from the textbook context, mentions the key point about no custom/import duties being levied, and briefly mentions the two categories of internal trade. The answer is approximately 110 words, fitting the 80-120 word requirement for SA questions.