International trade refers to the exchange of goods and services between countries. It encompasses the importation and exportation of various products, including manufactured goods, raw materials, and agricultural products. International trade is driven by the comparative advantage principle, where countries specialize in producing goods that they can generate more efficiently or at a lower opportunity cost than other nations. This trade allows countries to access products that are either unavailable or more expensive to produce domestically.
The dynamics of international trade are influenced by various factors, including trade agreements, tariffs, quotas, and exchange rates, which can impact the flow of goods and services across borders. Additionally, international trade can promote economic growth, increase market competition, and provide consumers with a wider variety of products. Overall, international trade plays a crucial role in the global economy by fostering interdependence among nations and enhancing the economic well-being of participating countries.
The U.S. has imposed a 10% tariff on Chinese imports, escalating trade tensions. China responded with retaliatory tariffs and investigations into U.S. tech companies. Economic analysts forecast a potential average…