What term denotes the exchange of goods and services among nations?

• A. Environmentalism
• B. National security
• C. International trade
• D. NAFTA

Answer: (C)

International trade is the exchange of goods and services among nations. This concept covers how countries buy what they don’t produce domestically and sell what they do produce to other countries, creating cross-border flows of products and money. When a country exports a product, it sells it abroad; when it imports, it buys from abroad. This system links economies, encourages specialization based on what each country can produce most efficiently, and generally leads to more variety and lower prices for consumers.

NAFTA is an example of a specific framework that facilitates international trade by reducing barriers between the United States, Canada, and Mexico, but it’s not the general term for the concept. Environmentalism and national security are separate topics—environmentalism focuses on protecting the environment, and national security focuses on protecting a country from threats—neither of which specifically names the cross-border exchange of goods and services.