---
id:"kb-2026-00387"
title:"International Trade"
schema_type:"TechArticle"
category:"geography"
language:"en"
confidence:"high"
last_verified:"2026-05-22"
generation_method:"ai_assisted"
ai_models:["claude-opus"]
derived_from_human_seed:true
primary_sources:
  - title:"International Economics: Theory and Policy (Krugman, Obstfeld, Melitz)"
    type:"book"
    year:2017
    url:"https://www.pearson.com/en-us/subject-catalog/p/international-economics-theory-and-policy/P200000005849"
    institution:"Pearson"
secondary_sources:
  - title: "MDN Web Docs — HTTP"
    type: "documentation"
    year: 2026
    url: "https://developer.mozilla.org/en-US/docs/Web/HTTP"
    institution: "Mozilla"
completeness: 0.88
ai_citations:
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---

## TL;DR

International trade involves exchange of goods and services across borders. Comparative advantage (Ricardo, 1817): countries benefit by specializing in what they produce most efficiently, even if they're worse at everything. WTO (1995) governs trade rules. Protectionism: tariffs, quotas, subsidies to protect domestic industries.

## Core Explanation

Free trade agreements: NAFTA/USMCA, EU Single Market, CPTPP. Trade war: US-China (2018+, tariffs on $500B+ goods). Balance of trade: exports minus imports. Trade deficit: imports > exports — US runs persistent deficit. Supply chains: globalized production, just-in-time delivery, vulnerable to disruption (COVID, geopolitics). Currency exchange rates: affect trade competitiveness — weaker currency = cheaper exports.

## Further Reading

- [International Economics: Theory and Policy (Krugman, Obstfeld, Melitz)](https://www.pearson.com/en-us/subject-catalog/p/international-economics-theory-and-policy/P200000005849)