When a Chinese supplier of bicycle parts exports bike seats to Detroit Bikes, the best description of what takes place is international trade. This involves the cross-border exchange of goods-specifically, bicycle parts-from a producer in China to a company in the United States that assembles the final product domestically

. Detroit Bikes imports components like bike seats from China and other countries but assembles the finished bicycles in Michigan. This sourcing strategy allows Detroit Bikes to benefit from lower production costs abroad while maintaining assembly and some manufacturing activities locally

. This transaction is distinct from foreign direct investment, which would involve ownership or control of production facilities abroad. Instead, it is a straightforward import-export transaction within the global supply chain, characteristic of international trade