What is a union in which groups agree to trade and help each other resolve disputes?

• A. Confederacy
• B. Coalition
• C. Alliance
• D. Federation

Answer: (C)

An alliance is a formal agreement among different groups to cooperate for mutual benefit. When those groups promise to trade with one another and to help settle disputes through diplomacy or shared institutions, they are forming an alliance. That matches the description in the prompt: a union built on ongoing cooperation and dispute resolution. A confederacy centers on member states keeping most sovereignty with a weak central authority, so cooperation exists but not as a single durable system for trade and dispute handling. A federation combines regions under a strong central government, sharing sovereignty, which isn’t the same as a cooperative pact focused on trade and resolving disagreements. A coalition is usually a temporary, goal-specific partnership and may not establish long-term trade and dispute-resolution commitments.