Foreign trade represents an economic activity that involves the exchange of goods and services abroad. Foreign trade encompasses two fundamental concepts - export and import. Exports are defined as the sale of domestic products on the foreign market, and imports as the purchase of foreign products for domestic purposes. In all countries, there are three types of factors governing foreign trade: state bodies, special missions, institutions, associations or communities and companies. Trade policy instruments include customs, import quotas, export subsidies, customs clearance fees, goods control, origin of goods, foreign currency restrictions and import taxes. Contemporary foreign trade theory has emerged as a result of the development of economic thought through the centuries. Theories that have influenced the creation of contemporary theory are mercantilism, absolute advantage theory, Ricard's theory, and Heckser-Ohlin's theory. Foreign trade is important for the overall economy of each country. By mutual exchange of goods and services abroad, the country is included in the world economy. The most important reason why each country is interested in joining the international exchange is that the development of social productive forces provokes a specialization of production. Specialization can take two forms: product specialization and specialization in production operations. Foreign trade of the Republic of Croatia has a direct impact on growth and development. International business is important for economic growth and development due to: the advantage of trade differences, the achievement of economies of scale and the achievement of profits and the protection of the domestic market. Smaller countries such as the Republic of Croatia, the only export-oriented economy can ensure steady and constant economic growth and development, and thus improve the economic situation in the country. The economy of the Republic of Croatia has countless deficiencies in export terms: fragmented production, insufficient production capacities, lack of a clear national export strategy, greater access to world capital, and the problem of transfer and technology.