Trade is the movement of goods, services, and financial instruments between individuals or organizations to fulfil needs and achieve gains. It involves buying and selling at market prices, based on supply and demand. It can occur at a physical (stores, markets) or virtual (stock markets, e-commerce) level and be affected by regulation, tariffs, taxes, and policies.

Trade can benefit a country by allowing it to access goods that are produced more efficiently in another region or in ways that its own climate, soils, or technology cannot produce. This is called comparative advantage, and it is a key aspect of modern economic growth. It can also allow countries to share risk. For example, if one country relies heavily on imports of critical medical goods, like vaccines or personal protective equipment, the loss of those supplies from a global disaster can quickly impair its economy. This was a risk that many nations faced during the pandemic, which led them to seek more suppliers of these essential goods.

While trade benefits consumers and companies alike, the efficiency gains are not always equally distributed among workers. For this reason, it is important to promote public policies, such as unemployment benefits and safety-net programs, that can help redistribute the gains from trade. See also: