What does international trade involve?

International trade involves the exchange of goods and services between nations. This concept encompasses a wide variety of economic activities that allow countries to sell their surplus goods or services to other countries while acquiring what they lack. The central idea is that through trade, nations can specialize in the production of certain goods or services based on comparative advantage, leading to increased efficiency and economic growth.

In contrast, the other choices relate to more localized or singular aspects of commerce. Transportation of goods within a country pertains to domestic trade rather than international. Local retail transactions focus solely on the buying and selling activities that occur within national borders, excluding international interactions. Lastly, stating that international trade only involves export activities ignores the fact that it also includes imports, which are just as vital for the economy as exports. Thus, understanding that international trade is fundamentally about the reciprocal exchange between nations clarifies why the correct answer points to the relationship and transactions occurring on a broader, global scale.