All commercial transactions between two or more countries
Natural resources Cost difference Reason of various countries not trading internationally..
Study of trade on goods and services Study of flow of money
Mobility of labour and capital Different monetary set up Different fiscal policy Production cost Product immobility Nationalist feelings Heterogeneous markets Different political setups Different foreign trade policies
Currency fluctuations Alien markets Heavy investments
Big market for local producers Economies of scale Export of surplus production Fuller utilization of resources Competitive spirit Export surplus finance imports
Unemployment due to imports Infant industry argument Exchange rate fluctuation: floating exchange rate of open economies Unequal distribution of wealth
International trade Why.. Risks.. Difference from local trade Advantages Disadvantages..