Our government has just signed a free trade deal with another country... being new to the whole trade and economics jargon what does this mean and is it good for ''a country''?
2007-09-07 13:52:32 · 7 answers · asked by ashar/97 6 in Social Science ➔ Economics
Both countries agree to allow the free flow of goods from the other county. Normally countries place a tariff (tax) on items made in their country to discourage shipments from other countries. In the case of free trade these tariffs are not put on the other countries goods.
2007-09-07 14:01:16 · answer #1 · answered by chris p 4 · 0⤊ 0⤋
What Does Free Trade Mean
2016-10-07 05:27:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Free trade means that the flow of goods between countries is not impeded by the government. Most countries have tariffs and stupid rules in an attempt to keep us from exporting product to their country. The US has very few. This is known as protectionism. For instance the US could put a fair wage tariff on products produced in China because they are manufactured by people who do not make a living wage. Thus it is nearly impossible for US factories to compete. The US pretty much does not care. Protectionism causes inflation and since Ronald Reagan we have decided that we like low inflation so we let companies dump here. However, we do protect farmers so we are really careful to limit the import of meats/produce. With exceptions for certain items that we do not grow such as bananas
2007-09-07 15:07:59 · answer #3 · answered by toledogolf 4 · 0⤊ 0⤋
Free trade is a term in economics and government that includes:
trade of goods without taxes (including tariffs) or other trade barriers (e.g., quotas on imports or subsidies for producers)
trade in services without taxes or other trade barriers
The absence of trade-distorting policies (such as taxes, subsidies, regulations or laws) that give some firms, households or factors of production an advantage over others
Free access to markets
Free access to market information
Inability of firms to distort markets through government-imposed monopoly or oligopoly power
The free movement of labor between and within countries
The free movement of capital between and within countries
2007-09-07 13:57:54 · answer #4 · answered by stephanie m 3 · 0⤊ 0⤋
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RE:
Hi, what does free trade mean??
Our government has just signed a free trade deal with another country... being new to the whole trade and economics jargon what does this mean and is it good for ''a country''?
2015-08-10 06:25:06 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes, I believe it means that they won't add on any extra tariffs with trading.
2007-09-07 13:55:58 · answer #6 · answered by Lindsey girl 3 · 0⤊ 0⤋
i'm pretty sure it means you trade for free.
2007-09-07 13:56:50 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Ask a Republican; they invented it. (The rich get richer, and the poor get poorer)
2007-09-07 14:01:32 · answer #8 · answered by Exitwound 7 · 0⤊ 1⤋