International trade policy refers to the rules and regulations that countries establish to govern the exchange of goods and services across borders. These policies can include tariffs, which are taxes on imported goods, and quotas, which limit the amount of certain products that can be imported. The goal is often to protect domestic industries, promote exports, and ensure fair competition. Countries engage in trade agreements, such as NAFTA or the European Union, to facilitate smoother trade relations. These agreements can reduce tariffs and eliminate trade barriers, encouraging economic cooperation and growth. Effective trade policies aim to balance the interests of consumers, businesses, and the economy as a whole.