The two major types of international trade are Bilateral trade and?

Step 1: Analyze the question The question asks for the two major types of international trade, with Bilateral trade already given. We need its counterpart.

Step 2: Explain the concept International trade is the exchange of goods and services between countries. It is classified by the number of countries involved:

• Bilateral trade: trade between two countries only. Example: Nigeria and Ghana sign an agreement to trade cocoa and crude oil products between themselves.
• Multilateral trade: trade among many (more than two) countries. Example: trade among members of ECOWAS or under the World Trade Organization (WTO).

Step 3: Evaluate the options

• A. Internal trade: This is trade within a single country (home or domestic trade), so it is not international trade.
• B. Multilateral trade: Correct. It is the standard counterpart to bilateral trade.
• C. Dilateral trade: Not a recognized economic term.
• D. Trilateral trade: Trade among three countries exists, but it is a specific case of multilateral trade, not one of the two major types.

Step 4: Answer The two major types of international trade are bilateral and multilateral trade.

Exam tip: Remember the prefixes: bi = 2, multi = many. If a question says "international", eliminate "internal" or "domestic" options right away, since they are about trade within one country.