International trade:

International trade is the exchange of goods, capital and services across international borders or territories. In several countries, such trade represents a important share of gross domestic product (GDP). While international trade has been shown throughout much of history, its economic, political and social importance has been on the rise in present time.

Industrialization, globalization, advanced transportation, multinational corporations, and outsourcing are all having a main impact on the international trade system. Increasing international trade is critical to the continuance of globalization. Without international trade, nations could be limited to the goods and services provided within their own borders.

International trade is, in standard, not different from domestic trade as the motivation and the nature of parties involved in a trade do not modify fundamentally regardless of whether trade is across a border or not. The basic difference is that international trade is typically more costly than domestic trade. The reason is that a border classically imposes additional costs such as tariffs, time costs because of border delays and costs related with country differences such as language, the culture or legal system.