Industrialization, advanced transportation, globalization, Multinational Corporation, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization, without international trade, nations would be limited to the goods and services produced within their own borders. Foreign trade is about import and export, but that by no means makes international trade simple. It takes a considerable amount of preparation and planning to enter a foreign market. The role of foreign trade in economic development is considerable. The classical and the neo-classical economists attached so much importance to international trade in a country’s development that they regarded it as “an engine of growth”. The overall conclusion is that foreign trade has made a tremendous contribution to the development of less developed countries in the 19th and 20th centuries and can be expected to make an equally big contribution in the future and that best policy from the point of view of economic development.