Trade Relations

Trade relations refer to the economic connections between countries, focusing on the exchange of goods, services, and capital. Nations engage in trade to obtain items they lack or to sell surplus products, aiming to boost their economies. Trade agreements, such as tariffs (taxes on imports) and quotas (limits on amount), shape these exchanges. Positive trade relations can lead to increased cooperation, economic growth, and better diplomatic ties, while negative relations might result in disputes or trade wars. Understanding trade relations helps explain how countries interact economically and impact global markets.