Which one of the following terms is used to describe trade between two or more countries?
(a) Internal trade
(b) International trade
(c) External trade
(d) Local trade
Answer:
(b) International trade ✅
Explanation:
International trade refers to the exchange of goods, services, and capital between two or more countries. It includes exports (selling goods to other countries) and imports (buying goods from other countries).
- Internal trade happens within a country.
- Local trade is limited to a small region or community.
- External trade is another term for foreign trade but is less commonly used compared to “International trade.”
Thus, international trade is the correct term for trade between multiple countries. 🌍📦🚢