free trade

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Free Trade

The state in which there are few or no tariffs or other trade barriers discouraging international trade. For example, a country with a free trade policy does not subsidize favored industries in order to make them less expensive compared to international competitors. Proponents of free trade argue that it is more economically efficient and helps consumers by promoting competition to keep prices low. Critics contend that free trade is detrimental to local jobs, especially in the developed world.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

free trade

the EXPORT and IMPORT of goods and services between countries totally unhindered by restrictions such as TARIFFS and QUOTAS. In general, free trade leads to a higher level of economic welfare in so far as it favours the location of economic activities in those countries best suited to their production, resulting, through the trade mechanism, in worldwide consumption gains in the form of lower prices and greater product availability. See INTERNATIONAL TRADE, TRADE INTEGRATION, WORLD TRADE ORGANIZATION.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

free trade

the INTERNATIONAL TRADE that takes place without barriers, such as TARIFFS, QUOTAS and FOREIGN EXCHANGE CONTROLS, being placed on the free movement of goods and services between countries. The aim of free trade is to secure the benefits of international SPECIALIZATION. Free trade as a policy objective of the international community has been fostered both generally by the WORLD TRADE ORGANIZATION and on a more limited regional basis by the establishment of various FREE TRADE AREAS, CUSTOM UNIONS and COMMON MARKETS.

See GAINS FROM TRADE, EUROPEAN UNION, EUROPEAN FREE TRADE ASSOCIATION, TRADE INTEGRATION.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Clinton should be receptive to the idea of proposing a free-trade agreement with Japan, especially since such an agreement would entail none of his NAFTA-related concerns about the environment or competition from low-wage labor.
Singapore has been pursuing free-trade agreements with several countries due to disenchantment with the sluggish pace of global trade talks, marked by the failure of the World Trade Organization to launch a new round of trade talks last year in Seattle.
"And for this to happen, Peru needs to establish free-trade agreements with large economies.
The Japanese official said Tuesday's meeting was "epoch-making" as it is the first time that Japan engages in a feasibility study on a free-trade agreement with another country at a governmental level.
Smaller free-trade agreements already abound among the countries of Latin America and Southeast Asia.
Republican support for free trade becoming anemic: A new poll by the Pew Research Center found that support for free-trade agreements among Republicans had fallen to 28 percent, from 43 percent in November 2009.
As the nation heads toward debate on the so-called free-trade agreements to create CAFTA and the FTAA, Americans need to be made aware that these agreements are intended to make American manufacturers dependent on foreign manufacturers through production sharing.
The greatest crime committed by the countries of Latin America is the search for free-trade agreements without planning for it.
Bush asked Congress to give him trade-promotion authority, once called "fast track," the ability to quickly enact free-trade agreements without congressional nit picking.