Introduction International trade is often referred to as bilateral trade where different countries engage in trading activities. International trade has been very instrumental in providing crucial goods and services to various countries. International trade can also involve the exchange of capital goods across territories. International trade has been made possible by the increasing globalization and an increase in population. In this case, countries need services and goods from other nations to ensure the satisfaction of the growing demand. International trade has been very instrumental in promoting world peace as countries’ relations are improved as through trade relations. The improvement in technology has been critical in promoting international trade where rising multinational corporations are emerging. Infrastructure is the major determinant in international trade because it facilitates the movement of products across national borders. The two countries should facilitate the interaction in the trade through improving their transport and communication sector. This will enable citizens to share information and goods between them. International trade is different from domestic trade in that the goods produced in the country are offered for sale to other nations that cannot produce such products. Thus, international trade enables the country to earn foreign exchange, which is important in stabilizing the economy (World Trade Organization, 50). Saudi Arabia Saudi Arabia is the largest state in the western Asia by land mass. It is located in the middle eastern part of Asia with neighbors such as Iran and Kuwait and Pakistan. It is referred to as the Kingdom of Saudi Arabia because it was founded by King Abdul-Aziz bin Saud. It has a population of about 29 million people. The country is an Arab speaking nation, and it is mostly known for its oil producing capacity in the world market. The country needs to import most of its food from other countries due to this high population and the climatic condition of the country. Saud Arabia uses the oil revenue to purchase these goods. The country’s production of oil is known worldwide. Thus, due to the high demand for oil, the country can use the oil earning to import other goods that citizens require. Over the last few years, the country has had a violent regime. After the overthrow of the Al Qaeda in the country, the country has been able to restructure and focus on industrialization. The country also imports labor force from the East African countries, especially the unskilled labor. The country has been improving its infrastructure so as to pave the way for industrialization. The country is a major partner in OPEC, which is a group of oil producing and exporting countries worldwide (World Trade Organization, 52). Balance of payment Balance of payment can be defined as all the monetary transactions that take place between countries and especially the trading partners. It includes the value of capital goods and service between two or more trading partners. The balance of payment is very helpful when constituting the value of export and comparing it to the value of import for a certain period. A country is said to have a positive balance of payment if it exports more than it imports and vice versa. S