Foreign trade refers to the exchange of goods and services between countries. It involves the import and export of goods across international borders.
Related terms
Trade deficit: A trade deficit occurs when a country imports more goods than it exports, resulting in a negative balance of trade.
Tariffs: Tariffs are taxes or duties imposed on imported goods by a government to protect domestic industries or raise revenue.
Free Trade Agreements: Free Trade Agreements (FTAs) are agreements between two or more countries that reduce barriers to trade, such as tariffs and quotas, in order to promote economic cooperation.