 Trade between two or more countries is called foreign trade or international trade. This involves the exchange of goods and services between the citizens of two countries. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries. Almost every kind of product can be found on the international market.

 Primary Reason: The primary reason for engaging in international trade is the unequal distribution of resources among nations. International trade offers some advantages to a nation.  Major Reason: There are at least two major reasons for countries to engage in international trade.  First one, a country may be able to benefit from buying products from a foreign country.  Second one, a country may be able to benefit from exporting goods.

 1. Tariifs  2. Subsidies  3. Quotas  4. Political barriers  1. Tariifs  2. Subsidies  3. Quotas  4. Political barriers

 Subsidies:  A subsidy is a government payment to a domestic producer. Subsidies take many forms including cash grants, low-interest loan, tax breaks and government equity participation.  Quotas:  An import quota is a direct restriction on the quantity of some good that may be imported into a country.  For example: The united states has a quota on cheese imports.  Under a tariff rate quota, a lower tariff rate is applied to imports within the quota than those over the quota.  Subsidies:  A subsidy is a government payment to a domestic producer. Subsidies take many forms including cash grants, low-interest loan, tax breaks and government equity participation.  Quotas:  An import quota is a direct restriction on the quantity of some good that may be imported into a country.  For example: The united states has a quota on cheese imports.  Under a tariff rate quota, a lower tariff rate is applied to imports within the quota than those over the quota.

 Political Barriers:  Administrative trade policies rules designed to make it difficult for imports to enter a country.  In the context of international trade dumping is variously defined as selling goods in a foreign market at below their costs of production or as selling goods in a foreign market.  Political Barriers:  Administrative trade policies rules designed to make it difficult for imports to enter a country.  In the context of international trade dumping is variously defined as selling goods in a foreign market at below their costs of production or as selling goods in a foreign market.

Exporting Licensing Contract manufacturing Management contracts FDI without alliances FDI with alliances

patents trademarks copyrights technical technology specific Licensor leases the rights to use intellectual property Licensee uses the intellectual property to create product

 Management contract  Turnkey project  FDI without alliances  FDI with strategic alliances

 An entrepot is a port, city, or trading post where merchandise may be imported, stored and/or traded, typically to be exported again. Trade in which imported Goods are re- exported with or without any additional processing or repackageing.