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.


Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Moreover, this study gives a proper understanding of the structural relationship between revenue collection and trade liberalization of Pakistan economy.
Another study made by Khattry (2001) in which he discusses the relationship between the trade liberalization and the revenue squeeze in the context of impact on publc investment.
At the same time, given the complexity of channels of trade liberalization which can have an impact on poverty, there is a room for further improvement in the research.
According to the calculated Dickey-Fuller statistic and comparing it with the critical values at different levels of confidence, the result is that all variables, except trade liberalization Logarithm and the Logarithm of price index, have a unit root.
Therefore, when investigating the potential of trade liberalization as an adaptation measure in the face of climate change, analysing the interaction among these factors is crucial to understanding the results.
I know there are people opposed to trade liberalization, and in particular the TPP.
In particular, in order to shed light on trade liberalization, we identify and quantitatively highlight trade liberalization metrics, notably export share of GDP, correlation between exports and income, and document changes in the size of exports as a percentage of economic output.
Section three analyzes the relationship between trade liberalization, financial development and endogenous growth.
How does one begin to implement trade liberalization and ensure that other reform processes follow suit?
There are several studies attempting to establish the effect of trade liberalization on employment in Mexico.
* Jiandong Ju, University of Oklahoma; Kang Shi, Chinese University of Hong Kong; and Shang-Jin Wei, Columbia University and NBER, "Trade Liberalizations and Global Current Account Imbalances"
These relationships are further enhanced with higher trade liberalization. Our empirical tests with seven related measures of trade liberalization on a sample of 623 MNEs from 14 EMs for 2000-2006 largely support our theory.