Overview
International trade agreements play a crucial role in shaping global commerce by establishing the rules that govern trade between nations. They aim to reduce barriers such as tariffs and quotas, facilitating smoother trade flows and fostering economic cooperation. Understanding these agreements is e...
Key Terms
Example: A 10% tariff on steel imports increases the cost of foreign steel.
Example: The US and Canada have a bilateral trade agreement.
Example: The World Trade Organization facilitates multilateral agreements.
Example: Quotas on imports are a type of trade barrier.
Example: NAFTA aimed to create a free trade zone between the US, Canada, and Mexico.
Example: Imposing tariffs to protect local industries is a form of protectionism.
Related Topics
Globalization
The process of increased interconnectedness among countries, affecting trade and economics.
intermediateEconomic Sanctions
Restrictions imposed by countries to influence the behavior of other nations.
advancedTrade Policy
Government laws and regulations that control international trade.
intermediateKey Concepts
tariffstrade barriersbilateral agreementsmultilateral agreements