Trading involves exchange of goods and services between two or more groups of either one nation or more than one nation. The trade which involves two nations is the bilateral trade and the trade associating more than two nations is the multi-lateral trade. The multi lateral trade between two different nations is called global trade. In Global trade various barriers have to be confronted, especially in export import trade of products. There are definite limits that are posed on the global trade by the nation itself such as the limit in the quantity of imported products, increased custom taxes and duty, and drop of the imports to the nation which makes the local markets able to compete with the foreign commodities. However, there are a range of advantages of these barriers in the terms of rise in the monetary and currency gains of the nation. These barriers also assist to produce more profits for a nation as the import of goods is limited to explicit amount and currency.

Global trade involves a range of activities of export and import of goods, which have a prominent affect on the worldwide economy. Global trade permits the customers to search for those products that they are not able to find in their nation. Global trade, in India, is very well-liked due to a variety of benefits it provides for the competence of the trade. The labor in India is very inexpensive and hard working. Moreover, India has a large quantity of raw materials that are essential to produce products. So, India is capable to produce the products at a large scale in reasonably less time, thereby growing the supply of that product in the global market. Global trade is very supportive in raising the financial system of India, providing it a competitive edge over other participating companies in the global trade. There are two basic approaches followed in global trade – free trade, referring to liberty of judgment in business, and protectionism, referring to the rules forced on the global trade.

A large number of business companies are entering into new partnerships with each other in global trade. However, the most important motive behind the growing global partnership is liberalization. On account of liberalization the global trade is mounting very fast and is also making available new areas of progress. Globalization has affected the progress of global trade in India. Globalization has amplified the access of multinational corporations to global trade and technology and now these firms can effortlessly get to know about latest changes in technology and apply it for their own profit. Business process outsourcing is also the result of liberalized trade policies followed all over the world. With the growing level of exchange of technologies between Indian companies and other multinational companies, the business process has become simple now.

International trade refers to the transfer of products from one country to another. International trade increases the level of world economy, and is concerned with the affect of international activities on the demand and supply worldwide. It provides opportunities for the customers as well as for the countries, to explore those products in other countries that are not available in their own country.

International market is a hub where every type of products and services, such as clothes, eateries, parts of the automobiles and other electronic devices, jewelry, oil products, wines and other stocks, are available. International trade also involves services such as banking, shipping, consulting and tourism. The service or product that involves selling by some country in the international trade is called an export and the one which involves buying by some country from the international market is called an import.

International trade allows well-heeled countries, like China, to use all their resources including currency, labor and technology, to the fullest. Every country possesses a different set of resources from the other countries. Similar is the case with China. China has low cost labor and very advanced technology, which enables it to produce those products very efficiently that are not available in other countries at low cost. Other countries can get those items by trading with China. International trade increases the efficiency of the country and also allows it to participate actively in the growth of economy at the global level. This helps in increasing the economy very efficiently, thus providing China a competitive edge against other participants in the global economy.

International trade involves two different concepts regarding the control level on trade: Free Trade is a liberal approach as it imposes no limitations on the trade. The main scheme is to focus on the demand and supply factors that execute on the international level, to ensure that production process is efficiently carried out. Protectionism states that guidelines for doing international trade are very necessary for the proper function of the market. If the market is not working efficiently, it will definitely obstruct the growth of international trade. Protectionism is forced in the form of tariffs and quotas.