International Trade

Definition

International trade is the exchange of goods and services between countries. It allows nations to specialize in producing what they are most efficient at and acquire resources or products that they lack domestically.

Related terms

Import: Imports refer to goods or services purchased by one country from another. They help satisfy domestic demand for items not produced domestically or obtained at lower costs abroad.

Export: Exports are goods or services produced domestically that are sold to other countries. They allow countries to earn revenue, create jobs, and stimulate economic growth.

Balance of Trade: The balance of trade is the difference between a country's exports and imports. A positive balance of trade occurs when a country exports more than it imports, while a negative balance indicates higher imports than exports.