Bilateralism refers to the political, economic, or cultural relations between two sovereign states. It is in contrast to unilateralism or multilateralism, which refers to the conduct of diplomacy by a single state or multiple states, respectively. When states recognize one another as sovereign states and agree to develop diplomatic relations, they exchange diplomatic agents such as ambassadors to facilitate dialogues and cooperations that will be exchanged. It is an agreement that is affecting or undertaken by two parties; a mutual agreement.