Q.Define Foreign Trade.

Foreign Trade is defined by the fact that the exchange crosses a national boundary, unlike trade conducted entirely within one country.

Foreign Trade (also called International Trade or External Trade) is the exchange of goods and services between the residents of one country and the residents of another country, involving the physical movement of merchandise (visible items) and services (invisible items) — along with the corresponding payments — across national boundaries. It is distinguished from Internal (domestic) Trade, which involves buyers and sellers residing within the same country and therefore does not cross a national boundary or require currency conversion, customs clearance, or compliance with another country's trade regulations.

Students sometimes give a definition of 'trade' in general (buying and selling) without specifying the cross-border/cross-country element that specifically makes it FOREIGN trade rather than internal trade.