Flow of Trade

Tariffs: These are taxes imposed on imported goods. They're like toll booths on our highway analogy - they make it more costly for cars (goods) to reach certain destinations (countries).

Supply and Demand: This is the basic principle that price is determined by how much of something is available (supply) and how much people want it (demand). It's like deciding where to drive based on gas prices and the number of open lanes.

Trade Agreements: These are deals between countries to reduce barriers to trade. Imagine if several cities along our highway decided to remove all their toll booths - that would make travel easier and faster!