Trade policy refers to the regulations and agreements that a country establishes to manage its economic exchanges with other nations. This includes tariffs, which are taxes on imported goods, and quotas, which limit the amount of certain products that can be imported. Trade policies aim to protect domestic industries, promote exports, and ensure fair competition. Countries often negotiate trade agreements, such as free trade agreements, to reduce barriers and encourage trade. These agreements can enhance economic cooperation and create opportunities for businesses. Organizations like the World Trade Organization (WTO) help facilitate these discussions and ensure that trade rules are followed globally.