Q.What is meant by International Trade ?

International trade is trade in goods and services carried on between countries, across national borders.

• Meaning: When the buying and selling of goods and services takes place between residents of different countries, it is called international (or foreign) trade.
• Components: it includes exports (goods/services sold to other countries) and imports (goods/services bought from other countries).
• Basis: it arises because countries differ in natural resources, climate, technology and factor endowments, so each specialises in what it can produce most efficiently. …