Part of: Miscellaneous Indian Gk set 287

Transfer of Coffee from Kerala to Delhi is what type of trade?

Category: Miscellaneous Indian Gk

Hint: Consider the geographical locations involved in the trade.

Correct Answer: B) Domestic Trade.

Exam Relevance: UPSC, SSC, Banking Exams, State PSC

Difficulty: Easy

Explanations:

Trade can be broadly categorized into two main types: domestic trade and international trade. Domestic trade refers to the exchange of goods and services within the same country, while international trade involves the exchange of goods and services between different countries. The question at hand involves the transfer of coffee from Kerala to Delhi, which are both states within India. Therefore, this transaction is an example of domestic trade.

Understanding the distinction between domestic and international trade is crucial for various competitive examinations, particularly those related to general knowledge and economics. Domestic trade is significant for the internal economic activities of a country, including the movement of goods and services between different regions or states within the country. It plays a vital role in the economic development and integration of a nation.

International trade, on the other hand, involves the exchange of goods and services across national borders. It is governed by international trade laws and agreements, and it often involves customs duties, tariffs, and other trade barriers. The transfer of coffee from Kerala to Delhi does not involve crossing any international borders, so it cannot be classified as international trade.

Visible trade, also known as merchandise trade, refers to the trade of tangible goods that can be physically seen and counted. This includes goods like coffee, which is a tangible product. However, the question specifically asks about the type of trade based on the geographical locations involved, not the nature of the goods being traded. Therefore, while coffee is a visible trade item, the classification of the trade as domestic or international is based on the locations of the states involved in the transaction.

In summary, the transfer of coffee from Kerala to Delhi is an example of domestic trade because it involves the exchange of goods within the same country, India. This type of trade is essential for the internal economic activities and integration of a nation, and it is distinct from international trade, which involves transactions across national borders.

Option Analysis:
  • Option A: This option is incorrect because the transfer of coffee from Kerala to Delhi is an internal transaction within India, not between two different countries. International trade involves transactions across national borders.
  • Option B: This option is correct because the transfer of coffee from Kerala to Delhi is a transaction that occurs within the same country, India. Domestic trade refers to the exchange of goods and services within the same country.
  • Option C: This option is incorrect because visible trade refers to the trade of tangible goods that can be physically seen and counted, such as coffee. While the transfer of coffee is visible trade, the question specifically asks about the type of trade based on the geographical locations involved.
  • Option D: This option is incorrect because the transfer of coffee from Kerala to Delhi clearly falls under the category of domestic trade, which is a well-defined type of trade within a country.

Mnemonic: Remember: "Domestic" means within the same house, so within the same country.

Back to Miscellaneous Indian Gk set 287 – Practice all questions