Countries can use many methods to increase trade with trading partners. One way that they can increase trade is to supplement the prices of key export items. This will make them more competitive in the international market and therefore boost demand from foreign markets.
Another thing that they can do is to enter into trade agreements with certain key trading partners. For instance, the European Union is a group of European countries that have essentially formed a block for a variety of reasons, including facilitating trade amongst them. Similarly, the United States entered into the NAFTA agreement with two of its largest trading partners, Mexico and Canada, to facilitate trade among the three countries. NAFTA stands for North American Free Trade Agreement, which recently has been updated by the Trump Administration’s United States Mexico Canada Agreement (USMCA).
To restrict trade, countries also have many mechanisms. They can impose import and export duties, which act in the opposite...
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