Q.Trade between two countries is known as ________.

International trade and business arise because natural resources, climate, and skills are unevenly spread across the world, so countries gain by exchanging what they have in relative abundance for what they lack. The principle of comparative advantage explains why both a more efficient and a less efficient economy still gain from trade, as each specialises in what it can produce at the lowest relative cost. Beyond resource differences, firms pursue international trade and b …