What is the role of international trade agreements in the global economy?

International trade agreements play a key role in the global economy by reducing barriers to trade, such as tariffs and quotas, and fostering cooperation between countries. These agreements, such as the North American Free Trade Agreement (NAFTA) or the European Union’s single market, aim to facilitate the free movement of goods, services, and capital across borders. By opening up new markets and reducing trade restrictions, trade agreements encourage economic growth, create jobs, and increase access to resources. They also help resolve disputes and promote fair competition, benefiting businesses and consumers alike by providing a more predictable and stable trading environment.