What is foreign trade and international trade

What is Foreign Trade - Basic Definitions

What is foreign trade and international trade

What is foreign trade and international trade

Knowing the basic definitions of foreign trade can help us understand and do international business more clearly and securely.

What is foreign trade and international trade

Trade

Trade itself is confused with foreign trade in its origin, since from the beginning of time, one community when negotiating with the other, were already practicing this trade, initially exchanging goods for merchandise, and then, by finding a commodity as standard (the salt, for example), began to use it as currency until we got to the paper money.

Commercial activity can be internal (within the country) or international (between countries). International trade is a branch of the commercial sciences that make up the Political Economy.

International Trade

It is the set of studies and commercial operations between two or more countries where there is exchange of goods, services and/or capital.

Foreign Trade

It is the set of studies and commercial operations expressed in national rules, norms and laws.

Foreign Trade is executed by the State or Government and International Trade is exercised by companies and/or individuals and/or institutions. Therefore, when we study the Foreign Trade of a country, we are studying its rules, norms, laws and its commercial policy. And when we speak of International Trade, we are referring to exports and imports of goods, services and capital.

Export

It is the output of a commodity and/or service from a customs territory, generating a currency inflow (currency).

Import

It is the entry of a commodity and/or service into a customs territory, generating an outflow of currency (currency).

Customs Territory

The customs territory is understood to be the place duly authorized by the authorities of the exporting/importing country to operate in the liberalization of exports and imports.

What is foreign trade and international trade.

Learn more about other foreign trade topics on the Intradebook blog.

 

Source: Intradebook – International Trade Book

Image: Bridging Gaps

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