International trade is the exchange of goods and services
between countries. This kind of trade gives rise to a world economy, in which
prices, or supply and demand, affect and are affected by global events. For
example, political change in US could result in an increase in the cost of labor, thereby increasing the
manufacturing costs for an Asian cellphone company based in Malaysia, which
would then result in an increase in the price that you have to pay to buy the cellphone
at your local mall.
