Final answer:
Global trade, or international trade, is the exchange of goods and services between countries and plays a vital role in the modern globalized economy. It supports cultural and economic integration, is a significant part of GDP, and has been enhanced by advancements in transportation and telecommunications.
Step-by-step explanation:
Definition of Global Trade
Global trade, also known as international trade, refers to the exchange of goods and services between countries. This facet of commerce has shaped societies since ancient times and now has underpinned the modern globalized economy. The significance of global trade can be understood in terms of its contribution to countries' Gross Domestic Product (GDP), its role in advancing globalization, and its influence on cultural and economic integration worldwide.
In light of this definition, the correct answer to the student's question is option 2) Exchange of goods and services between countries. Global trade often starts with specific objectives such as market expansion and can amplify into a complex array of economic, philanthropic, and entrepreneurial initiatives. This expansion of trade networks has been further propelled by developments in transportation, telecommunications, and corporate strategies to navigate international markets.
Globalization and global trade have also brought about an international division of labor, fostering competition and cultural exchange. As companies from developed nations make use of the labor and resources from various parts the world, the economic landscape shifts, creating interdependent relationships and sometimes fostering a sense of competition between domestic and foreign goods.