DEFINITION of 'International Commerce'

The buying and selling of goods between sovereign nations. International commerce allows countries to take advantage of competitive advantages in certain areas, while diminishing disadvantages in other areas. To help facilitate international buying and selling among countries, a variety of national and local government agencies have been set up, including the International Chamber of Commerce (ICC).

BREAKING DOWN 'International Commerce'

It is technically different from international trade, only in that commerce generally refers to buying and selling goods and services, as opposed to exchanging them. With businesses becoming increasingly more global, international trade and commerce has grown more and more popular, and has allowed companies in smaller geographical areas to compete against those based in more densely populated regions.

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