International Trade

In theory, international trade lets consumers have more variety from which to choose. International trade allows companies to supply markets outside their own domestic market and use their comparative advantage to generate profits. This can result in lower prices, or the availability of novelty items, for consumers and higher competition among similar businesses.

As businesses buy, sell, and trade in the global economy, they aim to take advantage of unique opportunities, supply sources, and the presence or lack of regulatory laws. While companies seeking to gain on a global level, businesses and international trade in general are particularly susceptible to the effects of tariffs as well as import and export quotas. For this reason, those who work in international trade work to promote the free exchange of goods, services, and capital across international borders.

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