Meaning of International Trade - SS3 Economics Lesson Note

International trade refers to the exchange of goods and services between countries. It involves the import and export of products and services across borders, with the aim of increasing economic activity and improving living standards.

 International trade enables countries to specialize in producing goods and services that they can produce more efficiently and cost-effectively, and to access products that they cannot produce themselves. We do not trade out of existing stock of goods. We produce in order to trade. 

Through international trade, countries can expand their markets, increase competition, and take advantage of economies of scale. International trade is facilitated by various agreements, policies, and institutions that govern the movement of goods and services across borders, such as trade agreements, tariffs, and international organizations like the World Trade Organization.