1- The sale of goods and services is not restricted to local, regional, or national markets; it often takes place on an international basis.
2- international trade is exchange of goods and services in the world or global market.
3- first benefit of international trade is makes scarce goods available to nations that need or desire them.
When a nation lacks the resources needed to produce goods domestically, it may import
them from another country. For example, Saudi Arabia imports automobiles; the United
States, bananas; and japan, oil.
4- Natural, human, and technical resources help determine which products a nation will specialize in. Saudi Arabia is able to specialize in petroleum because it has the necessary natural resource; Japan is able to specialize in production of televisions because it has the human resources required to assemble the numerous components by hand; and the United State is able to specialize in the computer industry because it has the technical expertise necessary for design and production.
5- a nation do a nation ought to specialize in the goods that it can produce more cheaply than its competitors or in the goods that no other nation is able to produce. According to the theory of comparative advantage.
6- The third benefit of international trade is its political effects. Nations that trade together develop common interests which may help them overcome political differences. Economic cooperation has been the foundation for many political alliances, such as the European Economic Community (Common Market) founded in 1957.