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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