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Because of the laws of enthalpy and entropy, free energy is always increasing. However, in endothermic reactions, or chemical reactions that require energy to occur, net free energy is negative because the energy is "lost" to the environment as it is bonded in the reaction.

Energy is often defined in reference to something else, and the sign of the energy is a function which direction is flowing. If energy (heat) flows from a system to the environment, the enthalpy change is negative (exothermic), whereas if energy flows from the environment to the system, the enthalpy change is positive (endothermic).

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