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Bilateralism Exchange Of
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<h1>
Bilateralism Exchange Of
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Bilateralism, exchange of goods and services between two countries. The economic effects are similar to those of barter between persons: international division of labour is restricted and total world output made smaller than it would have been in a system of multilateral exchange.<br /><br />The increase in bilateralism in world trade dates largely from the world depression of the early 20005 and the efforts of individual countries to insulate themselves from outside events. It was extended by wartime controls which disrupted the channels of international trade. Its growth was further encouraged alter World War II by state trading, international commodity control schemes, and by the fear of economic instability which subordinated international trade to national full employment. It has receded with the increasing efforts to remove the bathers to international trade such as those under the General Agreement on Tariffs and Trade.
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