NCERT Solutions for Class 11 Business Studies Chapter 10

Internal Trade Class 11

Chapter 10 Internal Trade Exercise Solutions

<< Previous Chapter 9 : Small Business Next Chapter 11 : International Business-I >>

Short answerslong answers : Solutions of Questions on Page Number : 249

Q1 :  

What is meant by internal trade?


Answer :

Internal trade refers to the process of exchanging goods and services within the national boundaries of a country. In other words, the buying and selling of goods and services within the domestic territory of a country is known as internal trade. Purchases of goods from a local shop, a mall or an exhibition are all examples of internal trade. The government does not levy customs or import duties on goods and services that are produced within the country for meeting the domestic demand.

Internal trade can be classified into the following two categories:

(a) Wholesale trade: It refers to the buying and selling of goods in bulk-that is, the exchange of large quantities of goods meant for resale in local markets.

(b) Retail trade: It refers to the buying and selling of goods in small quantities for final consumption.

Answer needs Correction? Click Here

Q2 :  

Itinerant traders have been an integral part of internal trade in India. Analyse the reasons for their survival in spite of competition from large scale retailers.


Answer :

Itinerant traders are retailers who do not have a fixed place of operation. That is, they do not have a shop from where they sell their products. They are also known as mobile traders as they keep moving from place to place in order to sell their products. They are generally found on street sides, and they shift their place of operation in search of more customers. They usually sell low-priced and non-standard goods.

The reasons that itinerant traders survive in spite of the tough competition from large-scale retailers can be attributed to the following factors:

(a) Low price of goods: Itinerant traders generally deal in low-priced goods that are of daily use to customers, such as toiletries, vegetables, fruits, etc. These traders do not have to spend on storage and advertising, and they keep their inventories short and limited. Hence, the prices of their goods are lower than the prices of goods sold by large-scale retailers.

(b) Personal attention to customers: Itinerant traders deal directly with consumers and are, therefore, able to give more attention to them. As they supply goods to customers at their doorstep, they provide greater customer-care services by eliciting proper feedback and passing on the information to manufacturers.

(c) Easy availability at short notice: Itinerant traders move from place to place and provide goods at the customer's doorstep. On the other hand, large-scale retailers have shops in central locations away from residential areas, and it is often difficult for customers to buy goods at the time they require them. Therefore, they depend on itinerant traders.

(d) Lower possibility of losses: Large-scale retailing involves a higher probability of incurring losses, because the retailers concerned deal in high-priced goods. Thus, in case the tastes and preferences of customers change, large-scale retailers are forced to sell the goods that have fallen out of favour. These goods are often sold at low prices in clearance sales, causing huge losses to the retailers. On the other hand, as itinerant traders deal in consumer goods that are low priced and of daily use, the probability of their incurring losses is minimised.

Answer needs Correction? Click Here

Q3 :  

Specify the characteristics of fixed shop retailers.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q4 :  

Discuss the features of a departmental store. How are they different from multiple shops or chain stores.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q5 :  

What purpose is served by wholesalers providing warehousing facilities?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q6 :  

Why are consumers cooperatives stores considered to be less expensive? What are its relative advantages over other large scale retailers?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q7 :  

How does market information provided by wholesalers benefit the manufacturers?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q8 :  

How does the wholesalers help the manufacturer in availing the economies of scale?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q9 :  

Distinguish between single line stores and speciality stores. Can you identify such stores in your locality?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q10 :  

How would you differentiate between street traders and street shops?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q11 :  

Explain the services offered by the wholesalers to the manufacturers.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q12 :  

What are the services offered by retailers to wholesalers and consumers?


Answer :

Please Register/Login to get access to all solutions Facebook Login
<< Previous Chapter 9 : Small Business Next Chapter 11 : International Business-I >>

Long answers : Solutions of Questions on Page Number : 250

Q1 :  

Imagine a life without your local markets. What difficulties would a consumer face if there is no retail shop?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q2 :  

Explain the usefulness of mail order houses. What types of products are generally handled by them? Specify?


Answer :

Please Register/Login to get access to all solutions Facebook Login
<< Previous Chapter 9 : Small Business Next Chapter 11 : International Business-I >>

Business Studies : CBSE NCERT Exercise Solutions for Class 11th for Internal Trade will be available online in PDF book form soon. The solutions are absolutely Free. Soon you will be able to download the solutions.

Popular Articles