Which document typically outlines the terms of a trade agreement?

The correct response highlights that a treaty or a memorandum of understanding (MOU) is specifically designed to outline the terms of a trade agreement. Such documents are formal agreements between parties that lay out the obligations, expectations, and benefits for each side involved in the trade. Treaties, which are legally binding between countries, often require ratification by legislatures, while MOUs are generally not legally binding but still create a mutual understanding and framework for cooperation.

The other options do not serve the same primary purpose. For instance, a legislative act pertains to laws passed by a governing body and is more focused on implementing regulations rather than directly outlining trade agreements. A policy statement functions as a guiding principle or framework for actions but lacks the specificity and binding nature associated with trade agreements. An executive order is a directive issued by a president or governor that manages operations of the government, not a detailed outline of trade agreements. Thus, the answer correctly identifies the most relevant documents for trade agreements.