Differentiate between bilateral trade and multilateral trade. Explain how ports are helpful in trade.

Trades:

 (a)  Bilateral trade: Bilateral trade is done by two countries with each other. They enter into agreement to trade specified commodities amongst them. For example, country A may agree to trade some raw material with agreement to purchase some other specified item to country B or vice versa.

 (b)  Multi-lateral trade: As the term suggests multi-lateral trade is conducted with many trading countries. The same country can trade with a number of other countries. The country may also grant the status of the “Most Favoured Nation” (MFN)  on some of the trading partners. 

Ports:

 (i) The chief gateways of the world of international trade are ports. Cargoes and travellers pass from one part of the world to another through these ports.

 (ii) The ports provide facilities of docking, loading, unloading and the storage facilities for cargo.

 (iii) The importance of a port is judged by the size of cargo and the number of ships handled. The quantity of cargo handled by a port is an indicator of the level of development of its hinterland.