Foreign/International Trade

Foreign trade is exchange of capital, goods, and services across international borders or
territories. In most countries, it represents a significant share of gross domestic product (GDP).
International trade has always a record in history, the economic, social and political importance
is always there in the recent centuries.
All countries need goods and service for the demand of people. Resources are the need of goods
and services. But every country only has limited resources. They cannot provide all the goods
and services that requires. We have to get our needs to other country and vice versa. International
trade means trade between two or more countries. It involves different currencies of different
countries that is in the laws, rules and regulations of the countries. So, international trade is more
complex.
According to Eugeworth, “International trade means trade between nations.” Industrialization,
advanced transportation, globalization, multinational corporations and outsourcing, they all have
a major impact on the international trade system. Increasing international trade is key to the
continuance of globalization. Without international trade, nations would be limited to the goods
and services produced within their own borders
International or Foreign trade is recognized as the most significant determinants of economic
development of a country, all over the world. The foreign trade of a country consists import and
export for the goods and services, which results into outflow and inflow of foreign exchange.