International Trade – Economic Theories

As per traditional concepts, trade was understood to refer to the exchange of goods. However, in the present era, it relates to lending, movements of goods, transactions linked with the flow of goods, promotion of buying and selling advance, borrowings, discount bills and mercantile documents, banking, and other forms of supply of funds. International Trade is the trade between two or more states, i.e., trade across borders. It may either be between the residents of two different states, or between two different states, or between a state and a resident.

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