Question

What is meant by multilateral trade?

• A. Trade of a country with two other countries
• B. Import of one country from another country
• C. Exchange of commodities between two countries
• D. Trade with a number of countries

Answer 1

The correct option is D Trade with a number of countries

Multilateral trade agreements are made between two or more countries to strengthen economy of member countries by exchanging of goods and services among them. The multilateral trade agreement builds commercial relationship, trade facilitation and financial investments among member countries of such multilateral trade agreement. Compared to bilateral trade agreement, multilateral trade agreements are difficult in negotiation of agreement, as more member countries are involved in multilateral trade agreements.