Question

What is meant by bilateral trade?

• A. Trade of a country with many other countries
• B. Import of one country from another country
• C. Exchange of commodities between two countries
• D. None of these

Answer 1

Answer: (C)

Exchange of commodities between two countries

Exchange of commodities between two countries is bilateral trade. Bilateral trade agreements often aim to keep trade deficits at minimum by keeping a clearing account where deficit would accumulate.