How do international relations affect trade agreements? 🔊
International relations significantly affect trade agreements as they facilitate negotiations and create frameworks for economic exchanges between countries. Political alliances, diplomatic relations, and regional stability influence the terms of trade, including tariffs, quotas, and regulatory standards. Trade agreements often reflect broader geopolitical objectives, enhancing cooperation among nations while also addressing issues like human rights and environmental protections. Consequently, shifts in international relations can either promote or hinder trade negotiations, impacting economic growth and influencing domestic policies.
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