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Trade Relations

Definition

Trade relations refer to the economic interactions between countries, including the exchange of goods and services. These relationships are often governed by international trade agreements.

Analogy

Think of trade relations like a group project in school. Each country (or student) has different strengths and resources. They work together, exchanging their skills or products (like research or presentation skills in a group project), to benefit everyone involved.

Related terms

International Trade Agreements: These are contracts between countries that outline the rules for trade between them. They can include things like tariffs, import quotas, product standards, and more.

Exports: Goods or services produced in one country and sold to another. It's like if you make a great PowerPoint slide and another group uses it in their presentation.

Imports: Goods or services bought by one country from another. Like if your group can't figure out how to do the math for your project, so you get help from someone else's work.