"well, they're representatives of the trade federation"

Hanging out with my daughter in her playroom (the attic) brings the unexpected sometimes. Tonight I found an old Star Wars colouring book in a bookcase and beckoned K over to investigate. (When I say old colouring book, I mean it's from 1999, when The Phantom Menace was released) K liked the book. As we flipped through its pages we spoke about the different characters. My daughter likes the two droids, the Princess, and Yoda best. Those are the only characters she remembers from the films she's seen.

Perusing the pages K asked me to identify good guys and bad guys. On one page she pointed at a couple of guys and asked me if they're good guys or bad guys. "Bad guys," I replied. Then she asked me what their names are. "Well, they're representatives of the Trade Federation," I explained. "What does that mean?" K inquired. I had no idea how to begin answering that question.

One of the many problems with The Phantom Menace is that its central conflict is too convoluted. This is supposed to be a story geared to kids and first idea for them to latch onto is a negotiation breakdown arising from an ominous trade blockade, which itself was incubated in the backroom dealings of a mysterious senate system. What was Lucas thinking?