International Trade




ENGLISH V ID1125

INTERNATIONAL TRADE 

DEFINITION

  International trade is the exchange of products, services and money across national borders; essentially trade between countries. When consumers in the U.S. purchase Swiss-made watches, Guatemalan-grown fruits, Chinese-made toys and electronics, and Japanese-manufactured automobiles, they experience the end result of international trade...


 

   Foreign trade is trade between the different countries of the world.  It is also called International trade, External trade or Inter-Regional trade.  It consists of imports, exports and entrepot.   

      The inflow of goods in a country is called import trade whereas outflow of goods from a country is called export trade

         Many times goods are imported for the purpose of re-export after some processing operations.  This is called entrepot trade.   

           Foreign trade basically takes places for mutual satisfaction of wants and utilities of resources...” Not only goods are traded, but services as well.   

      International trade also includes trade in services which is defined as “...the sale and delivery of an intangible product, between a producer and a consumer.

 





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