Bilateral trade

Imagine you have a toy car that you don't like anymore and your friend has a toy plane that he doesn't like anymore. You want the toy plane and your friend wants the toy car. If you give your friend the toy car and he gives you the toy plane, it's called trade.

Now, imagine if you and your friend are from different countries. You can still trade, but instead of toys, you can trade things like food, clothes, or cars. This is called international trade.

When two countries trade with each other, it's called bilateral trade. This is because it involves two countries, and "bi" means two. For example, if the United States and China trade with each other, it's called bilateral trade between the United States and China.

Bilateral trade can be good for both countries because they can get things they need from each other that they cannot produce themselves. This can help both countries become wealthier, and people can enjoy more things that they wouldn't have access to otherwise.

However, sometimes there can be problems with bilateral trade, like one country might try to sell things really cheaply to another country to try and put its own businesses out of work. So, countries need to be careful to make sure that bilateral trade is fair and benefits everyone involved.