International trade is commonly classified into two multiple types:
- Bilateral trade: The exchange of products between two countries is known as bilateral trade. (For example, consider a commodities transaction where two nations agree to trade one thing for another.) Imagine a nation swapping industrial equipment for oil to provide a more concrete illustration.
- Multilateral trade: Multilateral trade is the exchange of goods between more than two countries. A country may conclude trade agreements with different countries at the same time.
