International trade is the exchange of goods and services across national boundaries. It is the most traditional form of international business activity and has played a major role in shaping world history. It is also the first type of foreign business operation undertaken by most companies because importing or exporting requires the least commitment of, and risk to, the company’s resources. International trade allows manufacturers and distributors to seek out products, services, and components produced in foreign countries. Companies acquire them because of cost advantages or in order to learn about advanced technical methods used abroad; for example, methods that help reduce the cost of production lower prices and in turn, induce more consumption thus producing increased profit. Trade also enables firms to acquire resources that are not available at home. Besides providing consumers with a variety of goods and services, international trade increases incomes and employment. Determinants of Trade are: • Major determinants of exports: Presence of an entrepreneurial class; access to transportation, marketing, and other services; exchange rates; and government trade and exchange rate policies. • Major determinants of imports: Per capita income, price of imports, exchange rates, government trade and exchange rate policies. International trade in services has grown over the past decade at an annual rate of about 18 percent compared to that of approximately 9 percent for merchandise trade. In some countries, such as Panama and the Netherlands, services account for about 40 percent or more of total merchandise trade. Typical service exports include transportation, tourism, banking, advertising, construction, retailing, and mass communication. As a whole establishing Trading Business is one of the project which has good prospect for the entrepreneurs to invest. Capacity Export Products • Yellow Corn (Maize) : 60 Lakh MT/annum • Basmati Rice : 1.2 Lakh MT/annum • Rice General : 12 Lakh MT/annum • Cashew Nuts : 12000 MT/annum • Sugar : 12 Lakh MT/annum • Iron Ore : 10 Lakh MT/annum • Bauxite (Alumina) : 5 Lakh MT/annum • TMT Bars : 5 Lakh MT/annum • Tomato Paste : 6000 MT/annum Import Products • Steam Coal : 120 Lakh MT/annum • Processed cashew Nuts : 3000 MT/annum Trading Products - Metal Scraps : 12 Lakh MT/annum