What is International Trade ?

Exports and imports in goods are not the only shape of international trade. Trade in services is taking place as well such as tourism which can not be exported but can be offered to foreigners. Any spending of foreigners on domestic services are called invisible exports as it is not tangible (foreign currency flow in), which any spending of citizens on foreign services is considered invisible imports (foreign currency flow out).

Any flow of capital (in or out) is also part of international trade which would be in terms of loans, foreign direct and indirect investments, aids and grants.

While globalization effect and the openness of the economies and societies to global trade, countries do not only trade in terms of goods, services and financial resources but also open the area for transferring production technologies, consumption patterns, institutional and organizational arrangements, education, health and social systems and even values, ideals and lifestyles.


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