From Simple English Wikipedia, the free encyclopedia
International trade
is trade between different countries, also known as
importing
and
exporting
goods. Businesses in one country will then buy (import) or sell (export) goods to the businesses in other countries. Alternatively, the government of a country will sometimes directly buy from (or sell to) the government of another country.
Governments have sometimes forbidden or more often restricted international trade. When import of goods affects the prices of those same goods in the receiving country, that country's government may pass special laws to
regulate
the trading. They may then try to use
protectionist
methods such as high
tariffs
to discourage import. As a form of punishment or political pressure, some countries may impose
economic sanctions
, or
embargoes
that prevent trading altogether with a target country.
To promote relations, countries may agree to trade with each other without
protectionism
. This is called "free trade". Free trade reduces trade barriers in exporting items. Free trade is generally supported by
fiscal conservatives
; trade-protectionism is generally supported by
economic nationalist
and
leftist
parties.