international trade is different from internal trade because of the

International trade is different from internal trade because it involves the exchange of goods and services between different countries, while internal trade involves the exchange of goods and services within the same country. The difference is not based on the manufactured goods involved or homogeneity/heterogeneity of products or uniformity of prices, but rather the involvement of currency differentials. In international trade, currencies of different countries are used, and exchange rates play a significant role in determining the prices of goods and services being traded. In contrast, internal trade is conducted using the same currency, and exchange rate fluctuations do not affect prices.