Trade is a fundamental economic concept involving the purchase and sale of goods and services, with compensation paid to a seller by a purchaser or the exchange of goods or services between parties. Trade can take place in a producer-consumer economy.

International trade allows countries to expand markets for goods and services that might not have been available to them otherwise. That's why an American consumer can choose between a Japanese, German, or American car. As a result of international trade, there is greater competition on the market and hence more competitive prices, taking the consumer home to a cheaper product.