If external trade is also known as international trade, then why the option (c) international trade not the correct answer

The trade between two countries is called external trade.

External trade, also known as international trade, refers to the exchange of goods, services, and capital between two or more countries. It involves the buying and selling of goods and services across national borders, and it plays a significant role in the global economy. External trade allows countries to specialize in the production of certain goods or services and trade them with other nations, thereby benefiting both parties involved.

Key Points:
- External trade involves the import and export of goods and services between countries.
- It is an essential component of the global economy and contributes to economic growth and development.
- Countries engage in external trade to take advantage of comparative advantage, which refers to the ability to produce goods or services at a lower opportunity cost.
- The trade between countries can be bilateral, involving two nations, or multilateral, involving multiple countries.
- External trade can take various forms, such as the exchange of raw materials, finished products, services, and investment capital.
- International trade is facilitated by various factors, including trade agreements, tariffs, customs regulations, transportation infrastructure, and communication networks.
- It is regulated by international organizations such as the World Trade Organization (WTO), which promotes free trade and resolves trade disputes.
- External trade can have both positive and negative impacts on countries. It can lead to economic growth, job creation, and improved living standards, but it can also create economic imbalances and disparities.
- Countries engage in external trade to access goods and services that are not available domestically, to obtain resources or commodities at a lower cost, and to expand their markets and increase their competitiveness.

In conclusion, external trade, or international trade, is the exchange of goods, services, and capital between countries. It is a vital component of the global economy and allows countries to specialize in the production of certain goods or services while benefiting from the trade with other nations.