The four main types of international trade are:
Export Trade:
In export trade, goods and services produced in one country are sold to customers in another country. Exporting is a common strategy for businesses looking to expand their market reach.
Import Trade:
Import trade involves purchasing goods and services from foreign countries to meet domestic demand. Countries often import products that are not readily available or cost-effective to produce locally.
Entrepot Trade:
Also known as re-export trade, entrepot trade involves the import and subsequent re-export of goods without significant alteration. This type of trade often occurs in free trade zones or entrepots, where goods can be stored, processed, and re-exported.
Transit Trade:
Transit trade involves the movement of goods from one country to another through a third country. The goods are not intended for consumption in the intermediary country but are simply passing through on their way to the final destination.