Bilateral Trade

Bilateral trade refers to the exchange of goods and services between two countries. In this arrangement, each country agrees to trade specific products with the other, fostering a mutually beneficial relationship. For example, one country might export agricultural products while importing machinery from the other. This type of trade can be facilitated through agreements that reduce tariffs and other barriers, making it easier and cheaper for both nations to engage in commerce. Bilateral trade enhances economic ties, promotes cooperation, and can lead to more stable international relations.