This is also termed as home trade or domestic trade. It means exchange of goods and services within the geographical boundaries of one country. Both the buyer and seller belong to the same territorial boundaries. For instance, trade between Bangalore and Chennai is internal trade. Payments are made or received in local currency.
Characteristic features of internal trade
1. Internal trade is carried on within the boundaries of one country.
2. In this form of trade goods are carried on from one place to another place through railways and roadways.
3. In this form of trade payment is made or received in local currency.
4. In internal trade wide choice of goods are available.
5. In this type of trade payments can be made in cash, cheque and draft.
6. In this form of trade generally license need not be obtained, whereas it is a must in foreign trade.
7. In this type of trade, local rules and regulations have to be followed.