International trade is the result of specialisation in production. It benefits the world economy if different countries practise specialisation and division of labour in the production of commodities or provision of services. Each kind of specialisation can give rise to trade. Thus, international trade is based on the principle of comparative advantage, complementarity and transferability of goods and services and in principle, should be mutually beneficial to the trading partners.

In the modern economies the international trade is linked to which policy of a nation ?

Foreign policy

In the modern economies the international trade is linked to foreign policy of the nations in order to maintain its relationships with other countries and work for comparative advantage, complementarity and transferability of goods and services and mutual benefits.