---
title: "Free Trade — AP Comp Gov Definition & Exam Guide"
description: "Free trade is the exchange of goods across borders without tariffs or quotas. In AP Comp Gov, it drives economic liberalization in Mexico, China, and the UK."
canonical: "https://fiveable.me/ap-comp-gov/key-terms/free-trade"
type: "key-term"
subject: "AP Comparative Government"
---

# Free Trade — AP Comp Gov Definition & Exam Guide

## Definition

Free trade refers to the exchange of goods and services between countries without restrictions or barriers such as tariffs or quotas. It promotes economic growth by allowing countries to specialize in producing what they are most efficient at.

## Related Study Guides

- [Unit 5 Overview: Political and Economic Changes and Development ](/ap-comp-gov/unit-5/review/study-guide/duWeQ0C7lD6cJdKyRMP5)

## Review

### Related Terms

- [Tariffs](/ap-comp-gov/key-terms/tariffs): Taxes imposed on imported goods by governments to make them more expensive compared to domestically produced goods.
- [World Trade Organization (WTO)](/ap-comp-gov/key-terms/world-trade-organization-wto): An international organization that deals with global rules of trade between nations and resolves disputes related to trade agreements.
- Comparative Advantage: The ability of a country or individual to produce a good or service at a lower opportunity cost than others.