Editing International trade (section)

== Differences from domestic trade ==
[[File:Flight to Newark Liberty International Airport (EWR) with view to Newark Bay - panoramio.jpg|thumb|right|upright=1.35|[[Port]]s play an important role in facilitating international trade. The [[Port of New York and New Jersey]] grew from the original [[New York Harbor|harbor]] at the convergence of the [[North River (Hudson River)|Hudson River]] and the [[East River]] at the [[Upper New York Bay]].]]
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.

However, in practical terms, carrying out trade at an international level is typically a more complex process than domestic trade. The main difference is that international trade is typically more costly than domestic trade. This is due to the fact that cross-border trade typically incurs additional costs such as explicit [[tariff]]s as well as explicit or implicit [[non-tariff barriers]] such as time costs (due to border delays), language and cultural differences, product safety, the legal system, and so on.

Another difference between domestic and international trade is that [[factors of production]] such as capital and [[Labour economics|labor]] are often 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, labour, 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 of this 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 [[Immigration|immigrants]] became assimilated into their new country.<ref name="twsA36">{{cite news
 |author= Kusum Mundra
 |title= Immigrant Networks and U.S. Bilateral Trade: The Role of Immigrant Income
 |publisher= Department of Economics, Rutgers University
 |date= October 18, 2010
 |ssrn= 1693334
}}</ref>