Mastergp
Verified member
Foreign trade, otherwise called international trade, is the exchange of goods and services between two or more countries. The principle underlying the buying and selling between one country and another is specialisation. According to one researcher who that a country should specialize in the production of goods and services which it has advantage over another. This, he poi!ted out, will bring about the production of gods at cheaper cost.
It has some important types that we also need to know which include:
Bilateral trade:
Bilateral trade is a trade agreement in which two countries exchange goods and services. It occurs when each country tries to balance its payments and receipts separately and individually with every other country.
Multilateral trades:
Multilateral trade is a different type of trade in which a country trade with any other countries. This ensures international division of labour. It is a type of trade in which make countries exchange goods and services. Example is when Nigeria trade with USA, Britain and Russia. Multilateral trade is important if the total volume of world trade is to be raised to its maximum.
It has some important types that we also need to know which include:
Bilateral trade:
Bilateral trade is a trade agreement in which two countries exchange goods and services. It occurs when each country tries to balance its payments and receipts separately and individually with every other country.
Multilateral trades:
Multilateral trade is a different type of trade in which a country trade with any other countries. This ensures international division of labour. It is a type of trade in which make countries exchange goods and services. Example is when Nigeria trade with USA, Britain and Russia. Multilateral trade is important if the total volume of world trade is to be raised to its maximum.
