First of all, let's introduce a general definition.
- the activity performed by an enterprise aimed at buying and selling goods or services in order to make a profit.
This term is often confused with TRADE
- which means the activity of buying, selling or exchanging goods and services between different people and countries.
TRADE can be divided into two categories such as HOME TRADE and FOREIGN TRADE. The former occurs within the country while the latter occurs between different countries. This last meaning is part of a broader framework, that of INTERNATIONAL TRADE. There are two words to keep in mind: IMPORTS and EXPORTS. TO IMPORT means buying a good or service from a foreign country while TO EXPORT refers to the sale of goods and services outside national borders.
The difference between the quantities of goods and services imported with exports is called BALANCE of TRADE.When imports exceed exports, there will be a TRADE DEFICIT, while a situation in which exports are greater than imports will lead to a TRADE SURPLUS.