What is the name of the trade between one country and another?

Step 1: Analyze the question The question asks for the name of trade that takes place between one country and another. The key phrase is "between countries."

Step 2: Explain the concept Trade is classified by where it takes place:

• Domestic (home/internal) trade is trade within the borders of one country. Examples are a farmer in Kano selling to a trader in Lagos, or trade between states within Nigeria.
• International (foreign) trade is trade between two or more countries. It covers exports (goods sent out) and imports (goods brought in). Nigeria selling crude oil to India, or buying rice from Thailand, are examples.

Step 3: Check each option

• A. Domestic trade: This is trade within one country, so it is wrong.
• B. Internal trade: This is another name for domestic trade, so it is wrong.
• C. International trade: This is trade across national boundaries, so it is correct.
• D. Inter-state trade: This is trade between states within a country, such as Ogun and Oyo. It does not cross national borders, so it is wrong.

Step 4: Answer The correct option is C. International trade.

Exam tip: Look at the prefix. "Inter-" means between and "national" means nations, so international means between nations. Words like "domestic," "internal," and "inter-state" all point to trade inside one country. Watch out for "inter-state," because it also starts with "inter-" but refers to states, not countries.