Question

Trade between two countries is termed as ______.

Options

• Internal trade

• External trade

• International trade

• Local trade

Answer 1

International trade

Explanation:

The exchange of capital, goods, and services across international boundaries or territories involving two or more nations is officially called international trade. It allows countries to expand their markets and access resources that might otherwise be completely unavailable domestically. In contrast, internal or local trade takes place strictly within the geographic boundaries of a single nation using a single home currency.