A free trade agreement (FTA) is a treaty between two or more countries that aims to reduce or eliminate barriers to trade, such as tariffs and import quotas, to facilitate the exchange of goods and services. FTAs encourage comparative advantage by allowing countries to specialize in producing goods they can make efficiently, thus promoting economic growth and increased consumer choice. By reducing trade barriers, FTAs help to create a more competitive marketplace that can lead to lower prices and greater innovation.
congrats on reading the definition of Free Trade Agreement. now let's actually learn it.