Q.What is International Trade ? Write various types of International trade.

International trade is the exchange of goods and services between different countries (trade across national boundaries). Its three types are import trade, export trade, and entrepôt (re-export) trade.

Meaning of International Trade

International (or foreign) trade is the trade carried on between two or more countries — that is, the buying and selling of goods and services across national frontiers. It arises because no country is self-sufficient: countries differ in natural resources, climate, skills and costs, so each produces what it can produce best and exchanges the surplus for what it lacks. This is the basis of the principle of comparative advantage and aligns with the NCERT/CBSE commerce treatment of international trade.

Types of International Trade

1. Import Trade – Buying goods and services from a foreign country for use in the home country (e.g. India importing crude oil or machinery).
2. Export Trade – Selling goods and services produced in the home country to buyers in other countries (e.g. India exporting tea, software or textiles). …