Economics Balance Of Trade Questions
Bilateral trade agreements play a significant role in the balance of trade by influencing the flow of goods and services between two countries. These agreements establish the terms and conditions for trade, including tariffs, quotas, and other trade barriers. By reducing or eliminating trade barriers, bilateral trade agreements can promote exports and imports, leading to a more balanced trade relationship between the participating countries. Additionally, these agreements can help address trade imbalances by encouraging the exchange of goods and services that are in demand in each country, thus contributing to a more favorable balance of trade.