International Trade

International trade touches us all. We drink soda from cans made of aluminum mined in Australia, wear shoes made in Europe, eat fruit from South America, build machinery from steel milled in Asia, wear clothes made from African cotton, and live in homes built from North American wood. We take it for granted, yet before we can enjoy these products and materials, traders must negotiate prices and deliver the goods through a network of relationships that literally spans the globe.

The sale of goods and services is not restricted to local, regional or national markets, it often takes place on an international basis. Nations import goods that they lack or cannot produce as efficiently as other nations, and they export goods that they can produce more efficiently. This exchange of goods and services in the world, or global, market is known as international trade. …