Trade agreements shape domestic economic policies by establishing the terms of international commerce and influencing legislative frameworks. These agreements can facilitate foreign investment, enhance market access, and promote economic growth, ultimately affecting domestic industries and labor markets. As countries adhere to international standards and regulations set by trade agreements, local businesses may face both opportunities and challenges, leading to shifts in economic strategies. Policymakers must find a balance between fostering competitive markets and protecting domestic interests, ensuring that trade agreements reflect the broader economic goals and wellbeing of their citizens.