commerce: what is forign trade

MEANING OF FOREIGN TRADE ARE:
Foreign trade, otherwise called international trade, is the exchange of goods and services between two or more countries. The principle underlying the buying and the selling between one country and other is specialization. Theory of international trade, therefore, is based on the principle of comparative cost propounded by Dr John Richard.

TYPE OF FOREIGN TRADE  WITH EXPLAINATION
a)  BILATERAL: bilateral trade is a trade agreement in with two countries exchange goods and services. It is occurs when each country tries to balance its payment and receipt separately and individually with every other country.
b)  MULTILATERAL TRADE: multilateral trade is a try of international trade in which a country  trade with many other countries . this ensures international division of labour. It is a type of trade in which many countries exchange goods and services, eg. NIGERIA trade with the USA, BRITAIN and RUSSIA.
TOPIC NOTE COMMERCE
  


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