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It is an activity carried out by either countries or organizations to exchange products and services to boost their economy. It involves a scenario where a country simply because of production cost is high compared to importation cost or because the commodity is not available in the country.

When their is rise in international trade, it shows a shift in jobs away from industries where that economy doesn't have a comparative advantage and towards industries where it does have a comparative advantage. Thus, trade internationally would not have the same effect on everyone's wages. It will benefits some individuals financially who worked in an industries which is a comparative advantage while it will hurt others based on the low level of comparative advantages.