International trade involves commercial business between countries. It involves exchange of goods, services and capital across international borders. Countries trade with each other because individual countries cannot produce everything they need to use locally or consume everything that they produce. However, trade is not always straightforward. Countries have to choose when protect their domestic industries and when to allow free trade. Free trade is the situation whereby the government allows trade to proceed without any hindrance in restrictive quotas or tariffs. Protectionism, on the other hand, is whereby the government provides incentives for local producers to hinder entry of Continue reading...