International trade is, in principle, not different from domestic trade as the motivation and the behavior of parties involved in a trade do not change fundamentally regardless of whether a trade is across a border or not. However, in practical terms, carrying out the trade at an international level is typically a more complex process than domestic trade. Explain the differences between merchandise and service imports and exports. Provide relevant examples to illustrate your answer.

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Merchandise imports and exports refer to physical goods that are traded ... View the full answer