What is international trade?



International trade is exchange of capital, goods, and services across international borders or territories.
In most countries, it represents a significant share of GDP.
The unit of analysis in international trade is the aggregate economy of the country.
Sometimes international trade looks synonymous with international business,  but the slight difference is there.
International business is the performance of business activities that direct the flow of products from one country to another.
A purchase of goods from another country is called an import and sale of goods to another country is called an export.

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