Justify the following statement.

Combination of import-export trade is entrepot trade.

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1 Answers

1. Import, export and entrepot trade are the parts of foreign trade. 

2. When the goods are purchased from other countries it is called import trade. 

3. When the goods are sold to other countries it is called export trade. 

4. A combination of import and export trade is called entrepot trade. 

5. In case of entrepot trade goods are first purchased from one country i.e. imported and then sold to or exported to other country. 

6. E.g. Indian trader purchased some computers from Japan and sold them to Sri Lanka will be included in entrepot trade. 

7. Thus, entrepot trade is a combination of import and export trade.

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