International trade

\'International trade' is defined as trade between two or more partners from different countries (an exporter and an importer). Early international trade consisted mostly of barter transactions.

International trade is also a branch of economics. Traditionally, international trade is justified in economics by comparative advantage theory. New developments include in patterns of international trade: the integration of countries into trade blocs (e.g., European Union, NAFTA, EFTA, CEFTA) and globalisation.

Table of contents
1 Trade related concepts
2 Risks in international trade

Trade related concepts

Risks in international trade

The risks that exist in international trade can be divided into two major groups:

Commercial risks

  • Risk of insolvency of the buyer
  • Risk of protracted default - the failure of the buyer to pay the amount due within six months after the due date
  • Risk of non-acceptance

Political risks

See also: OPEC, World Trade Organisation, Business, Economics, Trade bloc, List of international trade topics



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