International trade, the practice of buying and selling goods and services between countries, is an important pillar of the global economy. In the era of globalization, the role of international trade is increasing, having direct implications for economic growth, job creation and distribution of wealth in various parts of the world. One of the significant impacts of international trade is increasing production efficiency. Countries can focus their resources on the sectors they are best at, known as comparative advantage. For example, countries with tropical climates can produce agricultural products more efficiently, while countries with high technology will excel in the manufacturing industry. In this context, trade enables global resource optimization. Another impact of international trade is increased access to goods and services. Consumers get a variety of products at more competitive prices, thanks to competition between producers at the international level. This not only increases people’s purchasing power, but also encourages innovation because companies are encouraged to continue to adapt and create added value. However, international trade also has negative impacts, including economic inequality. Countries that have better infrastructure and technology often dominate global markets, leaving developing countries on the sidelines. This injustice often triggers protests and political movements, when people feel that the benefits from trade are unequal. Furthermore, the environmental impacts of international trade cannot be ignored. Industrial growth driven by trade often results in the exploitation of natural resources, pollution and loss of habitat. Therefore, it is important for trade policies to consider sustainability aspects to maintain a balance between economic growth and environmental protection. International trade also contributes to global economic volatility. A financial crisis that occurs in one country can quickly spread to other countries through trade networks. The most obvious example is the global financial crisis of 2008, which caused many countries to experience a recession. This shows the need for multilateral cooperation to ensure sustainable economic stability. In the context of digitalization, international trade has been transformed. E-commerce provides new opportunities, enabling SMEs to reach global markets at lower costs. This encourages economic inclusion in developing countries, where small entrepreneurs can sell their products without having to go through expensive middlemen. Apart from that, trade policies such as free trade agreements and tariffs also play a role in shaping the international trade climate. These policies can be beneficial or detrimental depending on the country’s position in the global supply chain. Countries often have to adapt to new policies, which can create uncertainty for businesses. From a social perspective, international trade facilitates cultural exchange. Through traded goods and services, individuals can understand and appreciate the diversity of other cultures. This can strengthen relations between countries and create mutual respect between different nations. Meanwhile, the COVID-19 pandemic has shown the vulnerability of the international trading system. Global supply chains are breaking down, and many countries are struggling to gain access to basic goods. As a result, many countries are pushing strategies to increase domestic production and reduce dependence on imports. International trade is indeed the main driver of economic growth, but the challenges it presents need to be addressed comprehensively. Sustainable development and fair and inclusive trade policies must be a primary concern to ensure the benefits of trade can be felt by all, while preserving the environment for future generations.