International Trade, the exchange of commodities and services between states. International trade made its appearance in distant past. However, since all pre- capitalist modes of production were based on the natural economy, only a small portion of what was produced figured in international commodity trade. Capitalist production steadily increases in the interests of extracting higher profits and therefore "outgrows the bounds of the village community, the local market, the region, and then the state" (V. I. Lenin, Collected Works, Vol. 3, p. 66). This considerably expands the scope of international trade. Although initially only the more developed capitalist countries were engaged in international trade, with the development of capitalism more and more countries were drawn into it. The character of international trade is determined by the production relations in the participating countries. The 16th and 17th centuries witnessed the appearance of a world capitalist market (see World Market, Capitalist), which in the early 19th century assumed developed forms and in the epoch of imperialism became a universal capitalist market on the basis of the export of capital, economic division of the world and ultimate formation of the colonial system of imperialism. International trade in this market reflected the domination of the imperialist powers over the rest of the countries of the world. A world socialist market (see World Market, Socialist) emerged after the victory of the socialist revolution in Russia and several other countries. Rapidly growing trade among the socialist countries reflects the new content of international economic relations—relations of genuine equality and mutual assistance. International trade develops between socialist and capitalist countries as well, influenced by the production relations of both world economic systems (see World Market). International trade is the principal form of international economic relations which interacts with many other forms of these relations. In particular, the development of international specialisation and cooperation of production as well as international scientific and technological cooperation finds its reflection in the expansion of the exchange of commodities and services between countries. Whereas in the past international trade involved the exchange of commodities, today it involves the growing international exchange in scientific and technological achievements through licences and know-how. This accounts for nearly 10 per cent of the total international trade. The development of the productive forces and the structure of world production have influenced the dynamics and structure of international trade. In the 19th century raw materials, foods and textile goods were the mainstay of international trade. Today because of greater international industrial specialisation and cooperation, industrial goods, especially machines and plant, provide an increasing share in the international trade of the socialist and capitalist countries, and in the trade between them. The socialist countries are now working for more extensive development of international trade on a mutually advantageous basis without any discrimination. International trade must benefit the economic growth of all countries, bringing peoples closer together and becoming an important factor in strengthening peace.