International Trade: 

(1) The exchange of commodities between two or more countries is termed as international trade.

(2) It may take place through sea, air or land routes.

(3) Export and import are the components of international trade.

(4) Advancement of international trade of a country is an index to its economic prosperity. It is, therefore, considered the economic barometer for a country.

(5) The international trade leads to the earning of foreign exchange and benefits for the traders and exporters in the country.

Local trade:

(1) Local trade is carried within cities, towns or villages. Exchange of items takes place in local markets where items of local needs are catered to.

(2) Local trade mainly takes place through roads, railways, or inland waterways.

(3) Sale and purchase are the components of local trade.

(4) Advancement of local trade is a sign of economic prosperity of the local people.

(5) It does not earn foreign exchange but helps in the fulfillment of the needs of the people.