What do international trade agreements typically involve?

International trade agreements typically involve countries reducing import tariffs reciprocally, which is a key component of promoting trade between nations. By lowering tariffs, countries aim to increase the volume of trade by making imported goods less expensive for consumers and businesses. This reciprocal reduction means that countries agree to lower tariffs on each other's goods, facilitating a more efficient and open trading environment.

The emphasis on reciprocal tariffs highlights the cooperative nature of trade agreements, where countries benefit from mutual concessions that lead to enhanced trade relations. This process encourages a greater flow of goods and services, stimulates economic growth, and fosters competition, which can ultimately benefit consumers through lower prices and more choices.

The other options do not accurately represent the primary focus of international trade agreements. Imposing fines for late payments, guaranteeing foreign investments, or standardizing prices are not typical elements of such agreements, which primarily center around tariff reductions, quotas, and other trade facilitation measures.