Please understand that I am drawing on the experience of the Beta-testers here, not my own. As I understand it, you have two levels of trade:
Resource/Tech/cities-this occurs pretty much as it did in Civ3 (only apparently MUCH improved). You go into the diplomacy screen and negotiate the agreement and VIOLA you have a trade agreement. The upside of this system is that it does not require an open border to be performed.
Additionally, a trade network will allow resources to be 'traded' internally to all your cities within that network, just as in Civ3.
'Monetary Trade Routes'-when you build harbours or roads/rail, trade routes will naturally form between connected cities. The more cities you are connected to, the more trade routes will potentially pass through your city. I think the value of the trade routes formed is based on the size of the cities involved, but I am not certain. These trade routes can also form with foreign cities IF you have an Open Border agreement with them. Hope this helps.
Yours,
Aussie_Lurker.