International trade is the trade carried out between two or more countries. In order to
fulfill the needs of a country, both domestic and international products are required
because a country is not self sufficient with goods and services required. Further, a
country also needs to sell its excess production to other countries. Hence, almost all
the countries are engaged in international trade.
There are two categories of international trade.
- Import trade
- Export trade
# Import trade
Import trade is bringing goods from a foreign country or countries to this country.
Examples :-
Purchasing crude oil from Middle East countries
Purchasing automobiles from India, Japan etc.
# Export trade
Export trade is selling domestic goods to a foreign country or countries.
Examples :-
Selling rice,rubber and tea to European countries.
Selling apparel products to European countries.
