It is when two countries exchange goods and services for money or other goods and services. International trade has different characteristics like government policies, a mutually accepted currency, territorial specialization, and international competition.
Economic growth increases possibilities in many ways. Economic growth creates employment opportunities since it increases the money supply, which causes companies to increase production. An increase in production increases different factors of production, like labor. It increases the standard of living and allows companies to innovate.
International trade allows local producers to trade with other countries, allowing producers to export surplus goods, which in turn increases the country’s revenue. The other possibility is that it gives companies an opportunity to specialize in products and enhance the reputation of the country. With an increase in international trade, whereby there are more exports than imports, a country’s currency will increase in value, which will benefit them in terms of currency exchange.
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