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International trade is the exchange of goods and services between different countries. Depending on what a country produces and needs, it can export (sell goods to another country) and import (buy goods from another country). Governments can control international trade. The most common measures are tariffs (or duties) and quotas. A tariff is a tax on imported goods, and a quota is the maximum quantity of a product allowed into a country during a certain period of time. These measures are protectionist as they raise the price of imported goods to “protect” domestically produced goods.
International organizations such as the WTO (World Trade Organization) regulate tariffs and reduce trade restrictions between member countries.
Tariffs
Taxes
Quotas
International Trade