How do Google Ads and Google Merchant Center interact with each other?

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Google Ads passes campaign performance to Google Merchant Center so advertisers can use the data to influence future campaign builds.
Google Merchant Center passes campaign performance to Google Ads so advertisers can use the data to influence future campaign builds.
Google Merchant Center passes inventory data to Google Ads so advertisers can use the data to build a Shopping campaign.
Google Ads passes inventory data to Google Merchant Center so advertisers can use the data to build a Shopping campaign.