User:CJones UG/sandbox

= Trade agreement = A trade agreement this is when two or more countries agree on terms that helps them trade with each other. This helped them determine the tariffs and what they needed so that they could impose imports and exports on counties.

Exports are the things that include objects being shipped from a company to a foreign branch. Known as the goods and services that are made in one country and then sold at other areas.

Imports are the goods and services that are bought by residents that were made from foreign countries. That includes anything that has been shipped into the country even if its from a foreign country.

 Three types of Trade Agreements 

There are three different types of trade agreements. The first is unilateral trade agreement, this is what happens when a country wants certain restrictions to be enforced but no other countries want them to be imposed. This also allows countries to decrease the amount of trade restrictions. That is also something that does not happen often and could impair a country.

The second is bilateral trade agreement, this is between two countries. When both countries loosen their trade restrictions to help out businesses so that they can prosper better between the different countries this definitely helps lower taxes and it helps them converse about their trade status'. Usually this revolves around subsided domestic industries. Manly the industries fall under automotive, oil, or food industries.

The last one is multilateral trade agreement, this one is the hardest to work out. Usually involves three or more countries. With the more countries that are involved it’s definitely harder to negotiate. They are also more difficult to deal with because each country has their own set of things that they need and or want. Once this type of trade agreement is settled on it becomes a very powerful agreement. It covers a bigger area of the world. The largest multilateral trade agreement is the North American Free Trade Agreement between United States, Canada, and Mexico are the three countries involved in. U.s regional trade agreement is between countries in a certain area. The most powerful ones include a few counties that are near each other in a geographical area. These countries usually have more similar histories, cultures and even economic goals. North American Free Trade Agreement (NAFTA) January 1, 1989 was when it was put into effect, this is between United States, Canada, and Mexico this agreement was designed to get rid of tariff barriers between the different countries. Regional trade agreements are very hard to establish and commit to when the countries are way more diverse. Association of Southeast Asian Nations(ASEAN) this was formed in 1967 between the countries of Indonesia, Malaysia, the Philippines, Singapore, and Thailand the reasoning was so that they could engage political and economic encouragement and it helps them all keep regional stability.