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If you buy something to be delivered to me - for my use - then you, I and the supplier form the triangle.

Under normal trade, the money and goods (or services) travel between two people in opposite directions and it is all neatly balanced. But here, money will flow from you to the supplier, the goods will go from the supplier to me. Nothing - apart from goodwill - will go from me to you!

This is of particular importance in international trade where you, I and the supplier are based in three different countries. In "normal" trade, as described above, the two sides of the transaction are balanced so that the export of goods from country A to country B is matched by the a flow of money from B to A. And the current account of the bilateral balance of payments is, as the name suggests, in balance. But in triangle trade this does not happen.

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12y ago

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Q: What are three points of triangle trade?
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