International Trade defined as trade between two or more partners from different countries in the exchange of goods and services. In order to understand what International Trade is, it is simply and clearly means of buying and selling products between different countries. This type of trade gives progress and rise to a world economy, in which prices, or supply and demand, affect and are affected by global events. International trade is the globalization of the world and enables countries to obtain and attain products and services from other countries easily and expediently.
It gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries. International trade has been in existing throughout history and has an economic impact of the participating countries. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies, and water.
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Services are also traded: tourism, banking, consulting and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import. Imports and exports are accounted for in a country’s current account in the balance of payments.