International trade agreements

Definition

International trade agreements refer to agreements between countries that establish terms and conditions for the exchange of goods and services across borders. These agreements aim to reduce barriers to trade, such as tariffs and quotas, in order to promote economic cooperation between nations.

Related terms

Globalization: The process of increasing interconnectedness and interdependence among countries through the exchange of goods, services, information, and ideas.

Comparative advantage: The ability of a country or region to produce goods or services at a lower opportunity cost compared to other countries or regions.

Free trade: A policy that allows for the unrestricted import and export of goods without imposing tariffs or other barriers.