Global trade refers to the exchange of goods and services across international borders. It involves imports (goods coming into a country) and exports (goods leaving a country), creating economic interdependence between nations.
Related terms
Trade Deficit: A trade deficit occurs when the value of imports exceeds the value of exports in a given country over a specific period.
Protectionism: Protectionism is an economic policy aimed at shielding domestic industries from foreign competition through measures such as tariffs or quotas.
Comparative Advantage: Comparative advantage refers to the ability of one nation to produce a good or service at a lower opportunity cost than another nation. It forms the basis for specialization and trade between countries.