What are 'international trade agreements'?

International trade agreements are indeed global treaties that outline trade terms among countries. These agreements are crucial for establishing the rules governing commerce between nations, including aspects such as tariffs, trade barriers, and the protection of intellectual property rights. By creating a standardized framework, these agreements facilitate smoother trade by reducing uncertainties and promoting fair competition among participating countries.

For instance, international trade agreements can help create a more predictable trading environment by defining how goods and services can be exchanged, determining each party's obligations, and specifying dispute resolution mechanisms. This fosters stronger economic ties and can lead to increased trade volumes, benefiting the economies involved.

The other options do not capture the true nature of international trade agreements. Local treaties for internal trade only refer to agreements that apply within a single country, thus lacking the international dimension. Multilateral agreements focusing solely on tariffs would be too narrow, as these treaties typically cover a broader range of trade-related issues and are not restricted to just tariffs. Informal arrangements between businesses lack the formal structure and legal enforcement characteristic of international agreements, making them less significant in the context of global trade relations.