What term describes the exchange of goods and services between countries?

The correct term that describes the exchange of goods and services between countries is "International Trade." This concept encompasses all transactions that occur across national borders, which allows countries to specialize in the production of certain goods and services that they can produce more efficiently. International trade is fundamental to the global economy and includes various activities such as importing and exporting.

This trade helps countries benefit from their comparative advantages, access a broader variety of goods and services, and achieve economic growth. By engaging in international trade, nations can tap into larger markets and benefit from economies of scale.

In contrast, domestic trade refers to trade that occurs within a single country, local trade focuses on exchanges within a community or city, and regional trade pertains to exchanges between countries in a specific geographical area. Each of these terms denotes a more limited scope of trading activities compared to the global context of international trade. Understanding this distinction is crucial for grasping the dynamics of global commerce.