International trade significantly affects domestic policies by influencing economic priorities and regulatory frameworks. Countries engage in trade agreements that dictate tariffs, tariffs, and market access, shaping domestic industries. For example, a nation may adopt trade liberalization policies to attract foreign capital, which can benefit consumers through lower prices but may also harm local manufacturing jobs. Additionally, international standards often compel domestic policy adjustments, particularly concerning environmental regulations and labor rights. Overall, the balance between international obligations and domestic priorities plays a crucial role in shaping a nation's economic landscape.