International trade

Foreign trade

Is the trade which is conducted across the boundary of the country. It includes imports and exports.

1. Export trade is the selling of goods abroad.
2. Import trade is the buying of goods from abroad.

Terms of international trade

• Import trade — Is the trade which involves purchasing of goods and services from another country.
• Export trade — Is trade which involves selling goods and services outside of the country.
• Entrepot trade — It involves the importation of goods in a country not for sale in the country but for selling them to another country. e.g. a businessman in Tanzania may buy goods from Japan and then sell them to another trader in Zambia.
• Bilateral trade — Is the selling and buying of commodities with two countries only. e.g. Tanzania and Cuba, Tanzania and China, etc.
• Multilateral trade — This is when a country trades with many countries. e.g. Tanzania trades with Kenya, Uganda, Rwanda, Burundi, etc.