What is free trade exactly?

Question

What is free trade exactly?

Answer 1

Consumers exchange goods and or services without protection or tariff.

Answer 2

It's in the dictionary.

Trade between nations without protective customs tariffs.

Answer 3

Free trade is a market model in which the trade of goods and services between or within countries flows unhindered by government-imposed restrictions. Such government interventions generally increase costs of goods and services to both consumers and producers. Interventions include taxes and tariffs, non-tariff barriers, such as regulatory legislation and quotas, and even inter-government managed trade agreements such as NAFTA and CAFTA (contrary to their formal titles.) Free trade opposes all such interventions. Trade liberalization entails reductions to these trade barriers in an effort for relatively unimpeded transactions

One of the strongest arguments for free trade was made by classical economist David Ricardo in his analysis of comparative advantage. Comparative advantage explains how trade will benefit both parties (countries, regions, or individuals) if they have different opportunity costs of production.

Free trade can be contrasted with protectionism, which is the economic policy of restricting trade between nations. Trade may be restricted by high tariffs on imported or exported goods, restrictive quotas, a variety of restrictive government regulations designed to discourage imports, and anti-dumping laws designed to protect domestic industries from foreign take-over or competition.

Free trade is a term in economics and government that includes:

    * trade of goods without taxes (including tariffs) or other trade barriers (e.g., quotas on imports or subsidies for producers)

    * trade in services without taxes or other trade barriers

    * The absence of trade-distorting policies (such as taxes, subsidies, regulations or laws) that give some firms, households or factors of production an advantage over others

    * Free access to markets

    * Free access to market information

    * Inability of firms to distort markets through government-imposed monopoly or oligopoly power

    * The free movement of labor between and within countries

    * The free movement of capital between and within countries

Answer 4

The absence of tariffs and regulations designed to curtail or prevent trade among nations

Answer 5

anyone can trade with anyone on the planet without tariffs.