International Trade


International Trade

The buying and selling of goods and services across national borders is known as international trade.

International trade is the backbone of our modern, commercial world, as producers in various nations try to profit from an expanded market, rather than be limited to selling within their own borders. There are many reasons that trade across national borders occurs, including lower production costs in one region versus another, specialized industries, lack or surplus of natural resources and consumer tastes.

International trade gives consumers and countries the opportunity to have the goods and services not available in their own countries. Almost every kind of consumer or industrial product can be found on the international market: food, clothes, health products, education material, machinery, spare parts, jewelry, minerals and metals. Services are also traded: tourism, banking, consulting and transportation etc.

A product that is sold to the global market is an export, and a product that is bought from the global market is an import.