What is the definition of unilateral trade?

Answer

Unilateral trade refers to a trade arrangement between partner nations or organizations in which one of the partners benefits more than the other. It is based on trade agreements or policies in which one partner imposes terms and conditions on the other. Often, the more economically stable and empowered partner benefits more by designing and dictating terms of engagement, which are normally not equally beneficial to the weaker partner.

In most trade agreements, partner countries or trade blocks have the objective of expanding their trade and economic growth. Unilateral trade thus does not qualify as a trade agreement, based on its definition. Instead, unilateral trade enables the strategies, policies and actions of one partner country and allows it to expand its trade, market and economic powers at the expense of the other. In unilateral arrangements, the more economically powerful partner seeks to increase its exports to the economically weaker partner while restricting imports from the partner. The country restricting its imports benefits more from a unilateral agreement. The assumption by which weaker partners are exploited in unilateral trade is that free trade benefits both partners. That is, the actions of one partner are not perceived to harm the other in free trade.

Q&A Related to "What is the definition of unilateral trade?"
Countries should benefit from focusing on what they produce best and trading surpluses. In the 19th century, British political economist David Ricardo stated in his theory of comparative
http://www.ehow.com/about_6629155_definition-trade...
its the being between the thang with the thangy thang thang.
http://wiki.answers.com/Q/What_is_the_definition_o...
unilateral: involving only one part or side; tracing descent from either the paternal or the maternal line only
http://www.kgbanswers.co.uk/whats-the-definition-o...
Trade wind is a steady wind blowing from east to west above and below the
http://www.chacha.com/question/what-is-the-definit...
Top Related Searches
Explore this Topic
Global trade patterns are the trends that currently define international trade. These are general trends that can be used to generalize foreign trade, however, ...
A trade association is a group of people that meet who are in the same trade or type of business as you. There are associations for those who are in Human Resources ...
Vertical trade is the process of moving goods from a manufacturer to a consumer. Trade is defined as the act of buying and selling services and goods either in ...
About -  Privacy -  Careers -  Ask Blog -  Mobile -  Help -  Feedback  -  Sitemap  © 2014 Ask.com