Trade refers to the process of buying, selling, or exchanging goods and services between individuals or entities. It encompasses a wide range of activities, including local, national, and international transactions. Trade can be classified into two main types: internal trade (or domestic trade), which occurs within a country, and external trade (or international trade), which involves cross-border exchanges between different nations.

In trade, the value of goods and services is typically determined by supply and demand, and it can also involve barter systems, where goods are exchanged directly without the use of money. Modern trade often involves the use of various financial instruments and markets, as well as trade agreements and regulations that govern international commerce.

Trade is a fundamental economic activity that contributes to the growth and development of economies by facilitating the distribution of resources, fostering competition, and enabling specialization and innovation. It allows for the efficient allocation of goods and services, ultimately benefiting consumers and producers alike.