Question
Distinguish between:
  1. Bilateral and multilateral trade.
  2. Tariff and Non-Tariff barriers.

Answer

  1. ​​​​​​​
  • Bilateral trade is the trade of goods and services between two countries whereas multilateral trade is the trade of goods and services with more than two countries.
  • Due to bilateral nature of trade the cooperation between the two countries is encouraged, whereas in multilateral trade globalisation is encouraged.
  1. Tariff barriers refer to the restrictions imposed on imports by a government in the form of taxes, whereas non-tariff barriers refer to those barriers/ restrictions imposed by a government in forms other than taxes. These barriers mainly include restrictions on quantity and quality of goods imported.

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