For a long time, International trade has been the main connecting channel among countries, but it has increased tremendously in the past few hundred years and has a major impact on the economies of many countries. A basic question emanates that why countries trade and how trade patterns evolve. This question is answered in various economic theories, which explain many fundamental factors responsible for International trade. There are a wide range of political, economic, and practical factors that can affect the international trade. However, In this paper, we have discussed mainly the major fundamental economic factors affecting the international trade such as demographic changes, Transportation cost, Distance, technology, investment, trade agreements, the Exchange rate, governments trade policies and institutions activities etc. The aim of the proposed Paper is to analyze these fundamental factors. Based on the results, we can state that there is a place for an improvement in all searched fields.

KEYWORDS: International Trade, Demographic Changes, Transportation Cost, Distance, Exchange Rate.