ABSTRACT
Free trade is not based on utility but on justice. Edmund Burke, Irish Statesman (1729-1797)
International trade is the motor behind the process of globalization and in both a reactive and proactive fashion is a key driver in the development of international strategy. Conventionally trade was associated with the movement of physical products. However, post-industrialization trade has a strong intangible element as services and – increasingly – digital bits become increasingly prominent in the trading process. This chapter explores this extensive area of study by initially revisiting the major theoretical explanations for international trade. Thereafter, through subdividing the topic into trade in merchandise and services, the chapter explores trends and controversies in the global trading system.
