International Trade

International Trade

International trade is the exchange of both goods and services for money that takes place between countries.

Goods and services are exported and imported to and from countries. The payments in exchange for imports and exports causes flows of  currency. These flows of currency occurs in and out of the country.

These currency transactions will require exchanges between the domestic and overseas currencies. These affect the exchange rate.

This infographic shows these flows of goods and services and money in and out of the home country.

What is international trade?