What is external or foreign or international trade?
It is also known as Foreign Trade or International Trade. When buying and selling of goods take place across the national boundaries of different countries it is called External trade. It is also known as Foreign trade or International trade.
Why is foreign trade important?
The main reasons which make foreign trade important for economy of a country or the significance of foreign trade are: It helps in expansion of business and in dissolving monopolistic entities, increasing competition. It also encourages product innovation and brings wider availability goods and services to choose from.
What is difference between foreign trade and international trade?
In economic jargon the two terms are often confused but are not interchangeable, and that should always be differentiated: International Trade and Foreign Trade. … On the other hand, foreign trade involves commercial transactions between EU member states and third countries; in other words, between different customs.
What is international trade and its importance?
International trade allows countries to expand their markets and access goods and services that otherwise may not have been available domestically. As a result of international trade, the market is more competitive. This ultimately results in more competitive pricing and brings a cheaper product home to the consumer.