International Trade
International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services.
In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has existed throughout history (for example, Uttarapatha, Silk Road, Amber Road, scramble for Africa, Atlantic slave trade, salt roads), its economic, social, and political importance has been on the rise in recent centuries.
Carrying out trade internationally is a complex process compared to domestic trade. When trade occurs between two or more states, factors like currency, government policies, economy, judicial system, laws, and markets influence trade.
Some international economic organizations were formed to ease and justify the trade process between countries of different economic standing in the modern era, such as the World Trade Organization. These organizations work towards the facilitation and growth of international trade. Statistical services of intergovernmental and supranational organizations and governmental statistical agencies publish official statistics on international trade.
A product transferred or sold from a party in one country to a party in another is an export from the originating country and an import to the country receiving that product. Imports and exports are accounted for in a country's current account in the balance of payments.
Trading globally may expose consumers and countries to new markets and products. Almost every kind of product can be found in the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies, and water. Services such as tourism, banking, consulting, and transportation are also traded.
Jones, Ronald W. (1961). "Comparative Advantage and the Theory of Tariffs". The Review of Economic Studies. Oxford University Press. c.161-175
McKenzie, Lionel W. (1954). "Specialization and Efficiency in World Production." The Review of Economic Studies. c.165-167