Free trade barriers (e.g., quotas on imports

Free trade is a trade policy, which does not provides any restrictions towards the imports into and exports out of a country. This is a general idea of free market as applied to International trade. This is an agreement between 2 or more countries who agrees to remove / reduce the trade barriers such as – tariffs, quotas and other preferential trade barriers to be imposed on the goods and services traded between them. Free trade policy generally promotes following features:• 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• Unregulated access to markets• Unregulated access to market information• Inability of firms to distort markets through government-imposed monopoly or oligopoly power• Trade agreements which encourage free trade.


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