International trade refers to the exchange of goods and services between different countries. It allows countries to specialize in producing what they are comparatively more efficient at, and then trade those products with other countries for goods they are less efficient at producing.
Related terms
Trade deficit: A trade deficit occurs when the value of imports exceeds the value of exports in a country.
Trade surplus: A trade surplus occurs when the value of exports exceeds the value of imports in a country.
Tariffs: Tariffs are taxes imposed on imported goods, which can affect international trade by increasing prices and reducing demand for foreign products.