Global trade system governs flows of products between countries
1) Trade = regulated by governments = control what comes in and price. Controls include tariffs (taxes on products), non-tariff barriers (rules on quality of product) and banning of certain products (illegal drugs)
2) Controls make products more expensive for everyone
3) Trade agreements = cheaper products. Countries remove control for each other. 2 countries in a trade agreement. = bilateral trade agreements
4) Trade agreements between several countries = multilateral trade agreements - all countries remove tariffs and other controls
5) Global trade system = governed by WTO
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