Commercial policy
Okay kiddo. So when two countries want to trade with each other, they have to follow certain rules. These rules are called "commercial policy". Commercial policy is like a set of instructions that tell the countries how to trade with each other in a fair way.
For example, let's say you want to trade your toy with your friend's toy. You both need to agree on some rules, like what toys you will exchange, how long you will share the toys, and what happens if one of the toys breaks. This is just like commercial policy!
But when countries trade with each other, there are many more toys involved (like cars, clothes, and food). So the rules have to be more complicated too. Commercial policy helps countries make fair agreements about how to trade these things.
Sometimes, countries use commercial policy to protect their own businesses. For instance, if one country makes a lot of shoes, they might put a tax on shoes from other countries so people will buy more of their own shoes. This is called a "tariff".
Overall, commercial policy helps countries trade with each other in a fair way according to some agreed-upon rules.
For example, let's say you want to trade your toy with your friend's toy. You both need to agree on some rules, like what toys you will exchange, how long you will share the toys, and what happens if one of the toys breaks. This is just like commercial policy!
But when countries trade with each other, there are many more toys involved (like cars, clothes, and food). So the rules have to be more complicated too. Commercial policy helps countries make fair agreements about how to trade these things.
Sometimes, countries use commercial policy to protect their own businesses. For instance, if one country makes a lot of shoes, they might put a tax on shoes from other countries so people will buy more of their own shoes. This is called a "tariff".
Overall, commercial policy helps countries trade with each other in a fair way according to some agreed-upon rules.