DIFFERENCE BETWEEN FOREIGN TRADE AND INTERNATIONAL TRADE

In this article we want to differentiate 2 of the most used terms in the world of international marketing: “foreign trade” and “international trade”.

First of all we must be clear that the two concepts refer to the exporting activity as an importer, which is carried out outside our borders.

The difference between foreign trade and international trade refers to the trade that takes place between two economic entities beyond national borders or a country that carries out commercial operations with another country, however the term international trade gives the impression that the person making reference This activity is at a high point, which allows to contemplate in a global way, all the economic relations that exist between the different economic entities.

The term foreign trade refers to the commercial exchange of a country in relation to others. It is that economic activity that refers to the commercial exchange of capital goods and services that a certain country carries out with the rest of the countries in the world.

International trade can be defined as that which is carried out among the states that make up the international community, either through official bodies or individuals themselves. International trade should also be considered that which takes place between a state and an economic community, such as between Mexico and the European Common Market.

In conclusion in the practice of foreign trade, two or more countries participate, one exporter and the other importer, no matter if it has a free trade agreement or not, since in any case the exchange of goods and services will be allowed.

On the other hand, in international trade, economic blocks or regions participate, this presents trade agreements such as the FTAs, to allow the exchange of goods and services. Learn more about the free trade agreements of which Mexico is a party here.

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