Question

Country A has trade agreements with Country B and Country C. Country A has another trade agreement with Country D.

In which ways has Country A done international trade?

• A. Bilateral trade between countries A, B, and C
• B. Bilateral trade between countries A and D
• C. Multilateral trade between countries A, B, and C
• D. Multilateral trade between countries A and D

Answer 1

Answer: (B), (C)

Multilateral trade between countries A, B, and C

Country A is engaged in bilateral trade with Country D as only two countries are trading with each other. On the other hand, Country A is engaged in multilateral trade with countries B and C as more than two countries are trading with each other.