Internal Trade

This page contains the NCERT Business Studies class 11 chapter 10 Internal Trade from Part 2 Corporate Organisation, Finance and Trade. You can find the solutions for the chapter 10 of NCERT class 11 Business Studies, for the Short Answer Questions, Long Answer Questions and Projects/Assignments Questions in this page. So is the case if you are looking for NCERT class 11 Business Studies related topic Internal Trade question and answers.

Internal trade refers to the buying and selling of goods and services within the boundaries of a nation. It encompasses purchases from local shops, central markets, malls, door-to-door salespersons, and exhibitions, as long as the goods are acquired from an entity within the country. No custom or import duty is levied on such trade since the goods are part of domestic production and intended for domestic consumption.

Fixed shop retailers have the following characteristics:

Wholesalers providing warehousing facilities serve the purpose of taking delivery of goods when they are produced in the factory and storing them in their godowns/warehouses. This reduces the burden on manufacturers to provide storage facilities for the finished products, ensuring that manufacturers don’t have to block their capital in stocks. Additionally, by storing goods, wholesalers provide time utility and facilitate continuity of production activity throughout the year.

The wholesalers, being in direct contact with the retailers, provide valuable market information to the manufacturers about various aspects, including customer’s tastes and preferences, market conditions, competitive activities, and features preferred by the buyers. This information serves as an important source for manufacturers, helping them make informed decisions and tailor their products according to market demands.

Wholesalers collect small orders from numerous retailers and consolidate them into bulk orders for the manufacturers. This enables the producers to undertake production on a large scale, allowing them to benefit from the economies of scale. By facilitating bulk production, wholesalers help manufacturers reduce per-unit costs and increase efficiency.

Single line stores and speciality stores are distinguished as specified below.

Single Line Stores: These stores deal in a single product line such as ready-made garments, watches, shoes, etc. They keep a variety of items of the same line and are usually situated at central locations.

Speciality Shops: These retail stores specialize in the sale of a specific line of products. For instance, shops selling children’s garments, men’s wear, ladies shoes, toys and gifts, school uniforms, college books, or consumer electronic goods. They are generally located in a central place where a large number of customers can be attracted, and they provide a wide choice to the customers in the selection of goods.

Yes, in my locality, there’s a store called “Timeless Watches” which is a single line store focusing only on watches. On the other hand, “Kid’s Paradise” is a speciality shop that exclusively sells children’s garments and toys.

Street Traders (Pavement Vendors): Street traders are small retailers commonly found at places where a large floating population gathers, like near railway stations and bus stands. They sell consumer items of common use such as stationery, eatables, ready-made garments, newspapers, and magazines. They do not frequently change their place of business.

Street Stall Holders: These are small vendors commonly found at street crossings or other places where the flow of traffic is heavy. They attract floating customers and deal mainly in goods of cheap variety like hosiery products, toys, cigarettes, and soft drinks. The total area covered by a stall is very limited, and they handle goods on a small scale.

The following services are offered by the wholesalers to manufacturers.

These services enhance the shopping experience and build trust between the retailer and the consumer.

Itinerant Retailers: are traders who do not have a fixed place of business. They move with their wares from street to street or place to place in search of customers. Here are the reasons for their survival:

In conclusion, the adaptability, convenience, and unique selling proposition of itinerant traders have ensured their survival in the face of competition from large scale retailers.

Difference between Departmental Stores and Multiple Shops or Chain Stores:

Consumer Cooperative Stores are organizations owned, managed, and controlled by consumers themselves. Their primary objective is to reduce the number of middlemen, which in turn reduces the cost of products. Here are the reasons why they are considered to be less expensive and their advantages:

In comparison to other large-scale retailers, consumer cooperative stores prioritize member benefits, ensure product affordability, and operate with a community-centric approach. Their unique structure and principles set them apart, offering advantages that are often unmatched by traditional large-scale retail models.

Consumers face the following difficulties if there are no retail shops around them.

In the absence of local retail shops, consumers would face a myriad of challenges, ranging from practical inconveniences to economic and social implications.

Mail order houses are retail outlets that sell their merchandise through mail, without any direct personal contact with the buyers. The usefulness and the type of products generally handled by them are:

Mail order houses are best suited for goods that can be:

It’s important to note that mail order business is not suitable for all types of products. For instance, perishable or bulky goods that cannot be easily handled are not recommended for mail-house trading. Only goods that meet the above criteria are suitable for this type of trading.

Fixed shop retailers operate from a permanent establishment and offer a variety of products and services to consumers. Below is an extended classification of fixed shop retailers in my locality:

1. Single Line Stores: Shops that focus on a single line of product.

2. Specialty Stores: Stores that specialize in a specific brand or a product within a product line.

3. Departmental Stores: Large establishments with a variety of products organized into departments.

4. Supermarkets: Large stores primarily selling food products and household items.

5. Chain Stores or Multiple Shops: Retail shops that are part of a larger network, owned and operated by manufacturers or intermediaries.

6. Consumer Cooperative Stores: Organizations owned and managed by consumers.

Conclusion: The diverse range of fixed shop retailers in my locality caters to the varied needs of consumers. Each type of retailer plays a unique role in the market, offering consumers choices and convenience.

Introduction: Second-hand goods retailers play a significant role in the market by offering products that have been previously owned and used. They provide an affordable alternative for consumers and contribute to sustainable consumption by extending the lifecycle of products.

Findings: Based on my observations in my locality and the information from the Business Studies document, here are some retailers selling second-hand goods:

The information provided aligns with the understanding of retail trade, emphasizing the importance and role of different types of retailers in the market.

Introduction: The retail landscape has witnessed a significant transformation over the years. From traditional brick-and-mortar stores to the rise of e-commerce, the way consumers shop and the way businesses sell has evolved. Drawing from the Business Studies document and observing current trends, let’s delve into the differences between the retail business of yesterday and the anticipated changes in the future.

Conclusion:The retail business has come a long way from traditional shopping methods. With technological advancements and changing consumer preferences, the future of retail promises more convenience, personalization, and global reach. While the essence of retail – serving the customer – remains unchanged, the methods and platforms have evolved, offering both challenges and opportunities for retailers.

From my experience, the following is a comparison of the features of two retail stores selling the same product i.e., a small scale retailer like a general store and in a big store like a departmental store.

Conclusion: While both local general stores and large departmental stores aim to cater to consumers, their methods and offerings are quite distinct. The choice between the two often depends on the specific needs and preferences of the consumer.

The information related to the applicable GST on the given items is collected and categorization is presented below: