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FINANCIAL TERMS

Trade

Description

Trade means the buying and selling of goods and services between people, businesses, or countries. In simple terms, trade happens when one side exchanges something for something else. Trade is important because it allows people and countries to get products, services, and resources they may not produce efficiently on their own. It can support economic growth, lower costs, and create business opportunities. For example, if one country sells cars to another country and buys oil in return, that is international trade. Trade is not the same as aid. Trade involves exchange, while aid is usually help given without expecting an equal exchange in return.