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 ?
Given the paramount importance of trade liberalisation in economic growth process, it is necessary to understand the transmission channels through which liberalisation affects industrial productivity, private industrial investment, exports, imports and hence economic growth in Pakistan.
Trade liberalisation works when the inflexible rent-seekers are destroyed and the flexible rent-seekers change to other strategies.
In addition, the indifference of the member countries has not only slowed trade liberalisation in the region but it has also rendered it less prepared than the other regions of the world to benefit from global trade liberalisation.
Lamy said the WTO was working to strengthen the capacity of the large markets of the exporting countries, including the USA and Japan, promote trade liberalisation.
Article 19 of that agreement provides for regular reviews of the conditions of trade in basic agricultural products with a view to progressive bilateral trade liberalisation, since agriculture and fisheries are exempt from free movement.
Australian food exports to Asia remain strong, but action must be taken to ensure trade liberalisation efforts are not diluted.
This paper examines whether trade liberalisation played a role in shaping the wage structure of Pakistan in the late 1990s and early 2000.
The authors argue that this initiative could have a positive impact on trade liberalisation globally.