On the basis of sale and purchase of goods and services, international trade can be divided into three kinds.
They are export trade, import trade and entrepot trade.
- When the firm of country sells goods and services to a firm of another country it is called export trade.
- When the business firm of a country purchases of goods from the firm of another country it is called import trade.
- When the firm of country imports goods for the purpose of exporting the same goods to the firms of some other country with or without making any change in the goods meant for export it is known as entrepot trade.
