Eco-This was taken from economics past papers, page no-???, #ECO

What is international trade:

International Trade refers to the exchange of goods, services, and capital across international borders or territories. It allows countries to access resources, products, and markets that may not be available domestically. International trade can improve economic efficiency, promote competition, and lead to higher standards of living by providing access to a broader range of goods and services.

Types of international trade:

1. Bilateral Trade: Trade between two countries, where they agree on terms, tariffs, and regulations specifically between themselves. This often involves a trade agreement to enhance economic cooperation.

2. Multilateral Trade: Trade involving multiple countries. Multilateral trade agreements, like those governed by the World Trade Organization (WTO), establish trade rules and reduce barriers among many countries, promoting global trade.

3. Export Trade: Selling domestic goods or services to foreign countries. This can help a country generate revenue, support domestic industries, and expand into new markets.

4. Import Trade: Purchasing goods or services from foreign countries. Imports allow countries to access products that may not be produced domestically, often at competitive prices.

5. Re-Export Trade: When a country imports goods only to export them again after minimal or no processing. This is common in trading hubs or transit points like Singapore and Dubai, where goods are often re-exported to nearby regions.

6. Intra-Industry Trade: Trade of similar types of goods and services between countries. For example, two countries might both export and import different types of automobiles. This trade type is common among developed countries with specialized industries.

7. Countertrade: A barter-based system where goods and services are exchanged directly without cash transactions, often used when currencies are unstable or there are restrictions on currency exchange.

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