Question

define international trade how it's different from domestic trade​

Answer 1

Answer:

Internal Trade

International Trade

Definition

Internal trade is trade that involves buying and selling taking place between two parties which are located within the political and geographical boundaries of a country

International trade is referred to as a trade that involves buying and selling of goods between two individuals or businesses located in two different countries or it can be trade between two different countries

Currency exchange

There is no exchange of currency as trade takes place within the boundaries of the nation

Exchange of currency is there between the two countries/individuals/businesses involved in the trade

Trade Restrictions

No trade restrictions for internal trade

International trade has different restrictions as the two countries involved in trade have different policies with regards to trade

Transportation Cost

Transportation cost is less when trade is taking place within the borders of a country

Comparatively higher transportation costs as goods need to be transported across the world

Goods traded

Only those goods and services are traded that are available in the country

Helps countries to trade goods that are produced in surplus or purchase goods that are scarcely available

Foreign reserve

Does not generate any foreign reserve

International trade generates foreign reserves for the two trading countries

Explanation:

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Answer 2

The movement of goods and services from one nation to the other is known as international trade.

Explanation:

• International trade can be defined as the movement of goods and services from one country to another across the borders in a legal manner.
• International trade is one of the outcomes of the processes of globalisation and liberalisation of economies.
• International trade is different from domestic trade as domestic trade is only limited to buying and selling of goods within the borders of a nation.