Got this from the CIV3 site in the FAQs. There are a few things here I never did know, such as the coast based trading. So I am posting this here in case anyone else did not know or for any newbies...
How does overseas trading work?
There are two ways to establish a trade route between two cities on different continents, or in situations where roads or railroads cannot link two cities in any way: airports and harbors.
Using airports, both cities need only have airports to enable trade.
To trade via harbors, both cities need not only have harbors, but there must also be an unblocked path of navigable tiles between the two cities. This means that if your current research level (i.e., before Astronomy) restricts your naval vessels from leaving coast tiles, only coast-based trade routes can be established. Finally, rival vessels can block this route, preventing naval trade between two cities.
There are two ways to establish a trade route between two cities on different continents, or in situations where roads or railroads cannot link two cities in any way: airports and harbors.
Using airports, both cities need only have airports to enable trade.
To trade via harbors, both cities need not only have harbors, but there must also be an unblocked path of navigable tiles between the two cities. This means that if your current research level (i.e., before Astronomy) restricts your naval vessels from leaving coast tiles, only coast-based trade routes can be established. Finally, rival vessels can block this route, preventing naval trade between two cities.
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