International trade has evolved in the past few decades to hit more than $19 billion in 2018. As a result, entrepreneurs interested in a career in finance and international trade should understand the various types of global trade. As shown below, there are three major types of trade:

Import Trade

Import trade is the idea of buying services and goods from an overseas country because they are unavailable at competitive prices or in adequate quantities in your country. For instance, 82% of India's crude oil comes from other countries like Venezuela and the UAE. Those countries own substantial oil fields and are highly capable of exploring, refining, and transporting oil at cost-friendly rates. Again, UAE imports clothing and agricultural products from India because doing so is cheaper and easier than producing them in their country. 

Export Trade 

Meanwhile, export trade is an international trade approach specializing in selling locally produced services and goods to overseas countries. It's defined as the opposite of import trade. For instance, India exports dairy products, plastics, steel and iron, inorganic chemicals, raw ores, and oilseeds to countries such as China.

On the other hand, China exports organic chemicals, electrical equipment, mineral fuels, silk, and fertilizers to India. The goods are traded between the two countries, enabling them to maximize their production capacities. 

Entrepot Trade 

Entrepot trade is a particular international trade approach that comprises export and import trade. Here, services and goods are imported from one country to facilitate export to a different country. As a result, the importing country does not use the goods for sale or consumption. Instead, it adds value to the goods before exporting them. For instance, suppose India brings in rubber from Thailand, refines it, and exports it to Japan; that process would be known as entrepot trade. Many countries prefer entrepot trade due to:

- Poor direct connection or access between countries
- Lack of trade contracts between countries
- Improved logistical facilities or processing in a third country
- Inadequate trade finance in the importing country's banking facilities

Transformations in the Finance and Trade Industries

As times change, the finance and international trade world is set to undergo a crucial transformation. Many countries will be seeking a portion of the highly profitable foreign trade sector.

International trade is a global product that is expected to experience massive growth. As a result, both individuals and organizations will need to acquire a comprehensive understanding of finance and international trade complexities. This knowledge will come in handy to help them gain a competitive edge.

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