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Department of Trade

Definition

The Department of Trade (often called the Department of Commerce in the U.S.) is a government body responsible for promoting economic growth and job creation, often through regulating and facilitating international trade.

Analogy

The Department of Trade is like your school's guidance counselor. They help students (businesses) figure out their future paths (economic growth), assist with college applications (trade agreements), and provide resources for success.

Related terms

Tariffs: These are taxes imposed on imported goods—like if you had to give up some of your lunch money every time you borrowed a pencil from someone at another table.

Trade Barriers: These are measures that governments or public authorities introduce to make imported goods or services less competitive than locally produced goods and services. Like if the school made rules that made it harder for new students to join clubs.

Free Trade Agreements: These are treaties between two or more countries to establish a free trade area where commerce in goods and services can be conducted across their common borders, without tariffs or hindrances. Imagine if all the schools in your district agreed that any student could join any club at any school—they've created a 'free club area.'