The buying and selling of goods and services across borders is called what?

• A. Diplomacy
• B. NATO
• C. Commerce
• D. WHO (World Health Organization)

Answer: (C)

This question tests understanding of international trade—the buying and selling of goods and services across borders. When countries trade, they export what they produce well and import what they need or want from others. This exchange drives economic activity, supports specialization, and often involves things like imports, exports, tariffs, and trade agreements. The term used here to describe that cross-border buying and selling is commerce, which specifically covers the flow of goods and services between nations. Diplomacy is about managing relationships and negotiations between countries, NATO is a military alliance, and the World Health Organization focuses on global health—none of these describe the economic act of trading across borders. For example, buying electronics from another country or selling agricultural products abroad are both parts of international commerce.