(a) Foreign trade is the buying and selling of goods and services beyond the geographical boundaries of a country/between one country and the other.
(b) Difference between foreign and home trade Foreign Home

Foreign	Home
goods are moved beyond geographical boundaries	Goods are moved within the same country
Different currencies are used in foreign trade	one currency is used
There is language barrier in foreign trade	There is no language barrier in home trade
More complex documentation is required in foreign trade	Less documentation is required in home trade
Different social standards, rules and regulations are in use	The same social standard, rules and regulations are in use
Transport cost is higher in foreign trade	Transfer cost is lower in home trade
Foreign trade is subject to restrictions	Goods move freely within a country
Different weights and measures are in use	Same weights and measures are in use.

(c) Reasons for restriction of foreign trade
(i) To prevent the dumping of goods on the country.
(ii) To generate revenue for the country's economy.
(iii) To prevent and encourage local industries
(iv) as a retaliatory measure on foreign countries where their own goods are barred (countries that do not buy their own goods)
(v) To improve balance of payment deficit.
(vi) To create employment opportunities for their citizens.
(vii) To preserve the country's foreign reserve.
(viii) To prevent the entry of harmful goods.