Question

What is the difference between International and local trade?

Answer 1

The exchange of goods and services between countries and across borders is referred to as an international trade. Foreign Trade involves the transfer of goods from one country to the other country. The seller and buyer of the goods are from different countries. Domestic trade or the local trade happens when this business is conducted inside of a country’s borders. It means the exchange of goods and services are only made within the geographical boundaries of the country. The seller and buyer of the goods are from the same country. The cost of trading internationally is considerably higher than trading domestically.