Question

Write short note on classificaljon of foreign trade.

Answer 1

Types of Foreign Trade – The two types of Foreign Trade are: Bilateral trade: This is a trade agreement in which two countries exchange goods and services. Multilateral trade: This is the type of international tradewhere a country trade with two or more countries.

Answer 2

Foreign trade can be classified as follows:

1. Bilateral trade- It is a type of trade in which only two countries are involved in exchange of goods and services. Negotiations in this case are easier, lower incidence of import and helps in building relations.

2. Multilateral trade: It is a type of trade that involves more than two countries and hence the negotiations are a bit trickier and difficult. Also in such cases, the tariff gets reduced.