International trade agreements increasingly play a crucial role in environmental protection. Modern trade agreements often include provisions and clauses that address environmental concerns, aiming to ensure that the increase in trade does not come at the expense of the environment. These provisions can include commitments to adhere to international environmental standards, regulations to prevent the trade of goods that have a detrimental environmental impact (like endangered species or toxic waste), and measures to promote sustainable practices in production and supply chains. Moreover, some agreements provide frameworks for collaboration in environmental technologies and innovations, encouraging businesses to adopt greener practices. The inclusion of environmental clauses in trade agreements reflects a growing recognition of the need to balance economic growth with environmental sustainability. However, the effectiveness of these provisions depends on their enforceability and the commitment of the participating countries to uphold these standards.

Geopolitical tensions can significantly impact international trade, often leading to uncertainty, disruptions, and increased costs. When political relations between countries deteriorate, it can result in a range of trade barriers, including sanctions, tariffs, and embargoes. These barriers can disrupt supply chains, limit access to markets and resources, and increase the cost of doing business. For example, sanctions against a country can prevent businesses from other nations from trading with or investing in that country, affecting not only the targeted nation but also businesses worldwide that rely on its products or markets. Geopolitical tensions can also lead to shifts in global trade patterns, as businesses seek to reduce risk by diversifying their markets and supply sources away from unstable regions. Additionally, the uncertainty caused by such tensions can affect business confidence and investment decisions, leading to a more cautious approach to international expansion. Businesses often need to be agile and adaptable in navigating the challenges posed by geopolitical tensions, ensuring they have strategies in place to mitigate potential risks.

Currency fluctuations pose significant risks in international trade, affecting both the cost and profitability of cross-border transactions. When a business engages in international trade, it often has to deal with multiple currencies. If the currency of one country weakens relative to another, it can lead to several challenges. For exporters, a weaker currency in the buyer's country means that their goods or services become more expensive, potentially reducing demand. Conversely, if the exporter's home currency weakens, while this may make their offerings more competitive price-wise, it can also reduce the value of the foreign revenue when converted back to the home currency. For importers, a stronger home currency can reduce the cost of buying foreign goods, but a weaker home currency can increase these costs, impacting overall profitability. Businesses involved in international trade often use hedging strategies, such as forward contracts or options, to mitigate these risks, locking in exchange rates for future transactions.

Multinational corporations (MNCs) often have a significant influence on political decisions in host countries, primarily due to their economic power and investment capabilities. Their influence can manifest in various ways. For instance, MNCs can lobby for favourable policies, such as tax breaks or regulatory relaxations, which might benefit their business operations. This lobbying can be direct, through interactions with policymakers, or indirect, via contributions to political campaigns or participation in influential trade groups. Moreover, the threat of relocating their operations can pressure governments to create a more business-friendly environment. However, this influence is not always negative. MNCs can also drive positive changes, such as higher environmental or labour standards, especially in developing countries where local regulations may be less stringent. The key concern is ensuring that the influence of MNCs aligns with the host country's broader economic and social objectives, avoiding situations where policies disproportionately favour these corporations at the expense of local businesses and communities.

International trade presents both opportunities and challenges for small and medium-sized enterprises (SMEs). On the positive side, it allows SMEs to expand their market reach beyond domestic borders, potentially leading to increased sales and business growth. Access to international markets can also drive innovation, as SMEs adapt their products and services to meet diverse customer needs and standards. However, the challenges are significant. SMEs often lack the resources of larger corporations for market research, international marketing, and navigating complex legal and regulatory environments. Additionally, they may find it difficult to compete with larger, more established players in the global market. To succeed, SMEs need to leverage niche markets, focus on quality and unique selling propositions, and potentially seek support from government programmes designed to assist SMEs in entering international markets. Effective use of digital platforms and e-commerce can also be a game changer for SMEs, enabling them to reach global customers with lower upfront costs.