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Making Agreements with Friends is a problem-based learning exercise that uses an analogy to introduce complex concepts to students and aid them in their understanding of informal agreements and bargaining. Moreover, this activity helps students comprehend important components of informal agreements, including reputation costs and strategies (iteration, linkage, and coercion) countries use to increase the likelihood of cooperation. Although students do not have firsthand knowledge of creating and forming informal international agreements, everyone has experience with informal interpersonal agreements. The logic students use to determine who they can trust when making interpersonal agreements and the strategies they employ to increase the likelihood that the agreements they make will be kept are similar to the logic and strategies countries use when making informal international agreements. Therefore, students have many accessible examples to draw from once the instructor helps them observe the connection between their informal interpersonal agreements and the countries’ informal international agreements.