The term for trade agreements between two countries that promote commerce is

• A. Bilateral trade agreements
• B. Unilateral policies
• C. Multilateral agreements
• D. Economic unions

Answer: (A)

Two-country trade deals, called bilateral trade agreements, promote commerce by linking the economies of the two nations and reducing barriers to trade, such as tariffs and quotas, while establishing rules for how trade is conducted between them. The defining feature is that only two countries are involved, which is why this term fits best.

This differs from unilateral policies, which a single country enacts on its own without a partner, and from multilateral agreements, which involve three or more countries. Economic unions go even further, creating a common market with shared institutions and policies beyond simple trade terms. For example, a bilateral agreement between the United States and another country would set specific rules and preferences for that pair, without requiring participation by a third nation.