International Trade and Local Trade are two different concepts, but they both have an impact on the economy. They are also both related to trade in general.
The main difference is that international trade is when two countries exchange goods and services while local trade is when two people or businesses exchange goods and services within one country.
Before we move to the differences, let’s understand what are International Trade and Local Trade:
- International Trade: International trade occurs when a product is manufactured in one country and then transported to another country for sale.
- Local Trade: Local trade occurs when products are manufactured in one location but sold elsewhere in the same location.
Now, let’s move to International Trade vs Local Trade:
Major differences between International Trade and Local Trade
|International Trade||Local Trade|
|International trade has no such limitations—it can happen anywhere in the world.||Local trade is limited by the size of your area.|
|International trade takes much longer, sometimes weeks or months pass.||Local trade happens within a short timeframe.|
|International trade involves a lot more paperwork than local trade.||Local transactions don’t require this kind of paperwork.|
|International Trade is the sale, purchase, and exchange of goods between countries.||Local Trade is the sale, purchase, and exchange of goods within a country.|
|International Trade involves importing and exporting products via air or sea.||Local trade involves importing and exporting products via land transportation such as trucks and trains.|
Note that sometimes, the question might also be asked as “distinguish between International Trade and Local Trade”.
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In conclusion, there are a few differences between international trade and local trade.
International trade is more likely to be conducted with large corporations, whereas local trade more often occurs through small businesses.
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