International trade consists of goods and services moving in two directions:
1. Imports – flowing into a country from abroad.
2. Exports – flowing out of a country and sold overseas.
Visible trade refers to the buying and selling of goods – solid, tangible things – between countries. Invisible trade, on the other hand, refers to services.
Most economists globally agree that international trade helps boost nations’ wealth.
When a person or company purchases a cheaper product or service from another country, living standards in both nations rise.
There are several reasons why we buy things from foreign suppliers. Perhaps, the imported options are cheaper. Their quality may also be better, as well as their availability.
The exporter also benefits from sales that would not be possible if it solely sold to its own market. The exporter may also earn foreign currency. It can subsequently use that foreign currency to import things.
The term ‘commerce’ is often (not always) used when referring to the buying and selling of goods and services internationally.
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