What is trade?

I’m packing up my home-made jumpers to sell in France.

When we make things in one country and sell them in another like this it’s called export.

We’re able to export things we make, when people in other countries want to buy them.

Sometimes because they can’t get them from anyone else, or because they are cheaper or better quality.

I’ll also take some of their delicious local cheese while I’m here, to sell back home.

When we buy things from abroad and bring them home, we import them and we’ve been importing and exporting goods between countries for hundreds of years, buying and selling goods like this is called trade and it’s an important way to make money.

Trade happens between businesses and countries across the globe, with container ships and aeroplanes carrying goods like toys, food and even cars, from one place to another.

And it’s not only goods like these, sometimes people need experts to help them with things like engineering, banking and even teaching.

These experts sell their services to people around the world.

So these are called service industries.

In the Middle Ages, Britain made a lot of money selling goods like wool to other countries, but these days we sell more services.

Whatever we buy or sell, trade allows us to get the things we want, and make money at the same time.

Ooooh, lovely!