Question

What is the difference between international and local trade?

Answer 1

Hint:
Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties.

Complete answer:
It will be as easy as possible; when you buy items, you give the shopkeeper cash; this is the easiest type of trade/exchange. But a nation does not only operate on a simple trade. Like us, our country has its own needs, too. And there are states, cities, towns, all of which have needs within the country. Some have less wheat but extra iron, some have extra rice but less cotton. They have to exchange pieces of things, then.
When this business is conducted within the boundaries of a country, domestic trade or local trade takes place. That means that the trade of goods and services is only carried out within the country's geographical boundaries. The seller of the goods and the buyer is from the same country. The cost of foreign trade is significantly higher than domestic trading. The exchange of domestic goods within the borders of a nation is domestic trade, also known as internal trade or home trade. Wholesale trade is concerned with buying goods from manufacturers or dealers or producers in large quantities and selling them in smaller quantities to others who may be retailers or even consumers. Wholesale trade is undertaken by wholesale merchants or wholesale commission agents.
International trade allows countries to widen their economies and to provide access to products and services that would not otherwise have been available at home. The economy is more dynamic as a result of foreign trade. Ultimately, this leads to more competitive prices and takes the customer back to a cheaper product. International trade refers to the exchange of goods and services between countries and across borders. Foreign Trade involves the transfer of goods from one country to the other country. The seller and buyer of the goods are from different countries.

Note:
This is why an American customer can choose between a Japanese, German, or American vehicle. As a result of foreign trade, there is more competition in the industry and thus more affordable prices, taking the customer back home to a cheaper product.