Question

Trade between two or more than two countries is termed as _________.
1. National Trade
2. International Trade
3. Globalization
4. Privatization

Answer 1

Hint:
Trade is the exchange of capital, goods, and services between two or more states or countries.
The basis of trade is the diversity of resources in different states and countries.

Complete answer:
The differences in the geological deposits and climatic conditions in the supply of labour and capital provide opportunities for the country to specialize in the production of specific commodities. This specialization is exchanged between the countries.
The exchange of goods results in low cost production, increases the volume of the products. One more aspect is that every nation cannot produce everything for survival, such as China can produce cameras at low cost but it cannot extract petroleum. Thus, it exports cameras and can import petrol.
International trade is the way through which the buyers find the markets in the foreign cheaper to buy and sellers find it more profitable than selling in the domestic market.
Thus, International trade makes efficient use of the world’s resources. The Trade between two or more than two countries is termed as the International trade.
Therefore the answer is 2. International Trade

Note:
The advantages of international trade is that it develops a competitive situation in the domestic market based on the skills and access to resources and it also helps countries in terms of tax incentives, support in training initiatives to develop the national advantage.
Direct exchange of goods and services for other goods and services was seen as an early form of trade, barter. Without the use of currency, barter means exchanging items.