Whether a good or service will be traded internationally largely depends on:

The terms associated with the trade play a crucial role in determining whether a good or service will be traded internationally. These terms include the price at which the goods will be sold, the conditions of sale (such as payment methods and delivery arrangements), and other contractual obligations. Favorable trade terms can encourage international trade by making it more appealing for both buyers and sellers. For instance, if the price is competitive and the terms are conducive, producers are more likely to engage in international transactions.

Additionally, trade agreements between countries can influence the terms of trade, leading to reduced tariffs, quotas, or improved trade relations, which can further facilitate international exchange. When the terms support a mutually beneficial trade environment, it promotes the flow of goods and services across borders, enhancing international trade dynamics.