An agreement between different countries to smoothen economic activity between them.
Question
An agreement between different countries to smoothen economic activity between them.
Solution
This statement seems to be referring to a trade agreement. A trade agreement is a wide-ranging tax, tariff and trade treaty that often includes investment guarantees. It exists when two or more countries agree on terms that helps them trade with each other. The most common trade agreements are of the preferential and free trade types, which are concluded in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories.
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