Intermediate Microeconomic Theory
Free trade refers to the economic policy of allowing goods and services to be traded across international borders with minimal or no government restrictions, such as tariffs, quotas, or subsidies. This approach encourages countries to specialize in producing goods where they have a comparative advantage, leading to increased efficiency and economic growth. By removing barriers to trade, free trade facilitates a more competitive market environment, which benefits consumers through lower prices and greater variety.
congrats on reading the definition of free trade. now let's actually learn it.