Question

In five or six sentences, explain international trade. Be sure to discuss imports, exports, absolute advantage,

Answer 1

International trade represents the series of exchanges and commercial sales that countless countries exercise among themselves. To streamline this process and increase trade gains, there are a series of rules adopted by all countries with regard to world trade.

Import is the activity of buying products or services produced by other countries, while export is the term used to sell products or services to foreign countries.

When trading in a market, you reduce the risk that domestic trade issues may have in your company. The increase in turnover and revenue ensures that your company is more stable. The increase in international business revenue improves its national economy.

The comparative advantage is about free trade, countries with less effectiveness in production could also be positioned before the market. That is, explains how to establish a commercial relationship between two players, even if one of them has an absolute advantage over the other.

The trade balance measures the relationship between a country's imports and exports, and is part of the balance of payments (the sum total of economic transactions between a country and its trading partners around the world).  Balance of Payments shows the result of a country's foreign transactions.