Distinction Between Domestic And International Trade - SS3 Economics Lesson Note

Domestic Trade

Domestic trade refers to the exchange of goods and services within a country's borders. It involves the buying and selling of products between individuals, businesses, and organizations that operate within the same geographic location. Domestic trade can be carried out through physical marketplaces, online platforms, or direct transactions between buyers and sellers.

International Trade

International trade, on the other hand, involves the exchange of goods and services between countries. It involves importing and exporting products and services across borders, with the aim of increasing economic activity and improving living standards. International trade is governed by various agreements, policies, and institutions that facilitate the movement of goods and services across borders, such as trade agreements, tariffs, and international organizations like the World Trade Organization.

The distinction between domestic and International Trade 

The main distinction between domestic and international trade is the geographic scope of the transactions. Domestic trade takes place within a country's borders, while international trade involves transactions between different countries. 

Additionally, international trade often involves more complex regulations, negotiations, and logistics compared to domestic trade, due to the need to navigate different legal, cultural, and economic systems across borders.