What is meant by trade? What is the difference between international and local trade?
Trade is defined as the exchange of goods among people, states, and countries. The place where such exchanges take place is known as a market.
The main difference lies in the geographical extent of the exchange. International trade refers to the exchange of goods between two countries. It occurs through sea, air, or land routes and serves as an index of a country's economic prosperity, acting as an economic barometer.
On the other hand, local trade is carried out within specific cities, towns, and villages. It involves the exchange of goods and services within a limited area, whereas international trade extends across national boundaries.
Explanation
The answer is derived directly from the textbook definitions provided in the context. The first paragraph defines trade generally. The subsequent paragraphs distinguish between international and local trade based on the geographical areas mentioned (countries vs. cities/towns/villages) and the significance of international trade as an economic barometer.