What is "Multilateral trade"?

Question

an example would be good as well

Answer 1

Trades between many nations at one time.

So maybe one country or nation has one resource X, another has resource Y and another resource Z.

They all trade within countries their resources for Y in exchange for Z, for example.

good luk

Answer 2

Definition: Multilateral trade agreements are between many nations at one time. For this reason, they are very complicated to negotiate, but are very powerful once all parties sign the agreement. The primary benefit of multilateral agreements is that all nations get treated equally, and so it levels the playing field, especially for poorer nations that are less competitive by nature.

Examples: The Doha round of trade agreements is a multilateral trade agreement between all 149 members of the World Trade Organization.

Source: http://useconomy.about.com/od/glossary/g...

Answer 3

Multilateral nature of trade shows the fallacy in arguments that focus on the bilateral balance between particular countries. In recent years, the large bilateral trade imbalance between the United States and Japan has fueled protectionist sentiment. On many occasions over the last two decades, the United States has threatened to impose trade sanctions on Japan. But the bilateral balance by itself has no economic significance. Even countries that have a zero current account balance will run surpluses with some countries and deficits with others. Trade would be sharply curbed; imports would balance exports, but at the level of whichever was the smaller. The gains from trade would be secretly reduced.