What is international trade ?

International trade refers to the exchange of goods, services, and capital between countries. It involves the buying and selling of goods and services across national borders, typically facilitated by imports and exports. International trade allows countries to specialize in producing goods and services that they have a comparative advantage in, and then trade with other countries to obtain goods and services that they lack or cannot produce efficiently. It is driven by factors such as differences in resource endowments, technological capabilities, and consumer preferences. International trade plays a crucial role in the global economy, promoting economic growth, creating employment opportunities, and fostering international cooperation and interdependence.

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