Trade policy is defined as a collection of regulations and rules which should be abided by different organizations, region or countries while trading products. Every country has their own trade policy formulated by the public officials, so that they can create appropriate policies for their country. The use of trade policy helps in the smooth functioning of international trade allows us to set clear goals and standard perspective about the trading partners. In fact, in some places several nations come together to settle upon those trade policies which would be mutually beneficial.

Important aspects of trade such as export tax, import tax, quotas and inspection rules are part of the trade policies. However, there are some nations who tend to use measures from protecting their industry from the heavy burden of trade policy. Along with that trade barriers of distance even help in free trade to ensure that products or services can come to the market at lower prices.

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