Nature of foreign trade.
Foreign trade is as old as human civilization. Trade between persons and firms of different countries is called foreign trade. So the trade between two nations is called foreign trade or international trade. The following are nature of foreign trade:
- It involves exchange of goods and services between the citizens of two different countries.
- The transactions of foreign trade are classified into import trade, export trade and enter pot trade.
- It enables the citizens of one country to enjoy possession of goods produced by some other countries.
- The aim of foreign trade is to increase production and thereby raise the standard of living of the people.