Trade policies play a big role in how countries interact with each other. These policies include things like tariffs, quotas, and trade agreements.

1. Tariffs:

   • A tariff is a tax on imported goods. When a tariff is added, it can make the price of imported items go up by 5-10%. Because of this, imports might drop by about 20-30%.

2. Quotas:

   • Quotas are limits on how many goods can be brought into a country. For example, if there’s a limit on textiles, it might encourage 15% more production of those goods in the country.

3. Trade Agreements:

   • Trade agreements are deals between countries to make trading easier. For example, the European Union has free trade agreements that can increase trade by as much as 30% among its member countries.

In 2022, global trade grew by 9.8%. This shows how important it is to have clear and good trade policies in place.