Exchange of goods, services and capital across international territories and borders is called International trade, while exchange of goods, services and capital across national boundaries is called national trade.
International trade has a significant share in the GDP of most of the countries. The goods transacted among the countries include consumer goods and capital goods, consumer goods such as T.V and clothing while Capital goods such as raw materials, food and machinery. International trade is important because it raises the living standards, enables the consumers to enjoy a greater variety of goods and provides employment.
