(A) International-trade is the exchange of goods and services among countries across national boundaries. (B) International trade exists because:— (i) Countries need to trade to obtain commodities, they cannot produce themselves or they can purchase elsewhere at a lower price. (ii) It is the result of specialisation in production and benefits the world economy if different countries practise specalisation and division of labour in the production of provisions of services. (iii) Specialisation can give rise to international trade. International trade is based on the principle of comparative advantage; complementarity and transferability of goods and services and in principle, should be mutually beneficial to the trading partner. (iv) Now, trade is the basis of world’s economic organisation and is related to the external policy of concerned nations.