Trade Finance Insights – Day 1 (Introduction to International Trade)
In today’s topic I would introduce you to International Trade.
International trade is the exchange of goods and services across national boundaries. In many ways it is similar to domestic trade. What motivates the parties involved is to gain by exchanging something that is in surplus in one country for something that is scarce or unavailable in the other. That ‘something’ could be a physical goods or it may be a services.
Trade began with barter: the exchange of goods for goods or service for service. Although barter still exists through countertrade, goods and services are now more generally exchanged for money. However, the principles that underpin trade remain: each party trades in order to gain from the said transaction.