What are entrepot trade in commerce?

Entrepot trade refers to the practice of importing goods into a country or region, storing them temporarily, and then re-exporting them to other destinations. This type of trade often occurs in strategic locations with favorable logistics, allowing traders to take advantage of price differences, tariffs, or trade regulations. Entrepots serve as important hubs in global commerce, facilitating the movement of goods and enhancing trade networks. Cities like Singapore and Hong Kong are well-known examples of entrepot trade centers.