International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries.

Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders.

International trade is, in principle, not different from domestic trade as the motivation and the behavior of parties involved in a trade do not change fundamentally regardless of whether trade is across a border or not. The main difference is that international trade is typically more costly than domestic trade. The reason is that a border typically imposes additional costs such as tariffs, time costs due to border delays and costs associated with country differences such as language, the legal system or culture.

Another difference between domestic and international trade is that factors of production such as capital and labor are typically more mobile within a country than across countries. Thus international trade is mostly restricted to trade in goods and services, and only to a lesser extent to trade in capital, labor or other factors of production. Trade in goods and services can serve as a substitute for trade in factors of production.

Instead of importing a factor of production, a country can import goods that make intensive use of that factor of production and thus embody it. An example is the import of labor-intensive goods by the United States from China. Instead of importing Chinese labor, the United States imports goods that were produced with Chinese labor. One report in 2010 suggested that international trade was increased when a country hosted a network of immigrants, but the trade effect was weakened when the immigrants became assimilated into their new country.

International trade is also a branch of economics, which, together with international finance, forms the larger branch of international economics.

Ancient silk road trade routes across Eurasia.

Verb

to invest (third-person singular simple present invests, present participle investing, simple past and past participle invested)

1. (dated) To clothe or wrap (with garments).
   • 1851, Herman Melville, Moby-Dick:

     He was but shabbily apparelled in faded jacket and patched trowsers; a rag of a black handkerchief investing his neck.

2. To envelop, wrap, cover.
   • 1667: Night / Invests the Sea, and wished Morn delayes — John Milton, Paradise Lost, Book 1, ll. 207-8
3. To commit money or capital in the hope of financial gain.
4. To spend money, time, or energy into something, especially for some benefit or purpose.

   We'd like to thank all the contributors who have invested countless hours into this event.

5. To ceremonially install someone in some office.
6. To formally give someone some power or authority.
7. To lay siege to.
8. (intransitive): To make investments.
9. To prepare for lost wax casting by creating an investment mold (a mixture of a silica sand and plaster).

Derived terms terms derived from invest (verb)

• investable
• investor

• investment

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