What does foreign trade mean? How to understand the word foreign trade?

International trade refers to commercial activities carried out on an international scale, and its purpose is to achieve economic growth by buying and selling goods and services. Foreign trade involves various activities, including ordering, production, transportation, sales and payment.

The main forms of foreign trade include export (that is, selling goods and services to other countries) and import (that is, buying goods and services from other countries). Foreign trade can also be carried out indirectly through cooperative relations, such as agents and distributors.

The benefits of foreign trade include improving domestic economic competitiveness, creating employment opportunities, expanding the international market and improving production efficiency. However, there are also some challenges in foreign trade, such as currency exchange risks, trade barriers and unstable political situation.

Therefore, companies involved in foreign trade activities need to comprehensively evaluate market conditions, legal provisions and political risks to ensure the smooth progress of their foreign trade activities. In addition, the company also needs to have strong knowledge and experience in international trade to ensure the success of its foreign trade activities.