INTERNATIONAL TRADE:

– International trade is the exchange of goods and services between countries.

– This type of trade gives rise to a world economy.

Importance:

– Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries.

– Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewellery, wine, stocks, currencies and water.

– Imports and exports are accounted for in a country’s current account in the balance of payments.

– Global trade allows wealthy countries to use their resources more efficiently.