International trade refers to the exchange of goods and services from one country to another. In other words, imports and exports. 

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to the exchange of goods and services from 1 country to another.

Imports flow into a country from abroad, while exports flow out of a country and are sold overseas.

There are 2 types of international trade, visible and invisible trade.

Visible trade refers to the buying and selling of solid, tangible goods between countries,

while invisible trade refers to the buying and selling of solid,

tangible goods between countries, while invisible trade refers to the buying and selling of services.

A nation's current account balance is the total visible plus invisible exports minus all visible plus invisible imports.

If an economy exports more than it imports, it has a trade surplus.

On the other hand, if an economy's imports are greater than its exports, then it has a trade deficit.

International trade benefits whole economies and consumers.

Consumers have a greater variety of goods to choose from and are available at lower prices.

If countries can trade, there is better allocation and utilization of resources.

By competing against other nations, companies become more efficient and produce better goods.

Countries that trade a lot tend to have lower unemployment than protectionist nations.

International trade also enables countries to sell their surplus produce.

And lastly, international trade fosters peace, goodwill, and mutual understanding between nations.

Thank you for watching this markets business news video on international trade.


Speaker 0: What is international trade? International trade refers

Speaker 1: to the exchange of goods and services from 1 country to another. In other words, imports and exports. Imports flow into a country from abroad, while exports flow out of a country and are sold overseas. There are 2 types of international trade, visible and invisible trade. Visible trade refers to the buying and selling of solid, tangible goods between countries,

Speaker 0: while invisible trade refers to the buying and selling of solid,

Speaker 1: tangible goods between countries, while invisible trade refers to the buying and selling of services. A nation's current account balance is the total visible plus invisible exports minus all visible plus invisible imports. If an economy exports more than it imports, it has a trade surplus. On the other hand, if an economy's imports are greater than its exports, then it has a trade deficit. International trade benefits whole economies and consumers.

Consumers have a greater variety of goods to choose from and are available at lower prices. If countries can trade, there is better allocation and utilization of resources. By competing against other nations, companies become more efficient and produce better goods. Countries that trade a lot tend to have lower unemployment than protectionist nations. International trade also enables countries to sell their surplus produce.

And lastly, international trade fosters peace, goodwill, and mutual understanding between nations. Thank you for watching this markets business news video on international trade.

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What is International Trade?