Merchandise trade is the international exchange of tangible goods between countries, a vital component of the global economy. It covers the cross-border buying...
Merchandise trade specifically refers to the international exchange of tangible physical goods, such as manufactured products, raw materials, and agricultural produce, between different countries.
Merchandise trade involves physical goods that can be stored and shipped, while services trade deals with intangible services like tourism, financial services, and transportation, which are consumed at the point of delivery.
It drives economic growth by fostering specialization, enhancing efficiency, providing access to diverse goods, creating jobs, and influencing a nation's balance of payments and foreign exchange reserves.
Exports are goods produced domestically and sold to foreign countries, while imports are goods purchased from foreign countries and brought into the domestic market for consumption or further processing.
It is usually measured using customs data, which records the value and volume of goods crossing national borders. This data is essential for calculating a country's balance of trade and overall economic performance.