Trade involves the distribution of goods and services from the place of production to where they are needed for consumption.
Trade is divided into two categories, these are:
- Home trade
- Foreign trade
This is involves buying and selling of goods and services within the boundaries of a country. For example, exchange of goods and services within the country of Tanzania.
Foreign trade
This is involves buying and selling of goods and services between two or more countries. It is also known as international trade. For example, exchange of goods and services between Tanzania and Kenya.
