2007-11-19 07:15:14 · 7 answers · asked by Anonymous in Politics & Government ➔ International Organizations
In historical terms countries taxed items coming into it or being exported from it. The taxes were called tariffs. The idea of free trade is just that - trade between nations with no taxes, no subsidies (supposedly) and the people should benefit with lower priced goods.
2007-11-19 07:17:52 · answer #1 · answered by netjr 6 · 1⤊ 0⤋
Dictionary.com Unabridged (v 1.1) - Cite This Source - Share This
free trade
–noun 1. trade between countries, free from governmental restrictions or duties.
2. international trade free from protective duties and subject only to such tariffs as are needed for revenue.
3. the system, principles, or maintenance of such trade.
4. Chiefly Scot. smuggling.
2007-11-19 15:22:39 · answer #2 · answered by Jiggity 2 · 0⤊ 0⤋
Something I would like to know as well, Down here next to the Mexican boarder it's interesting to watch these custom agents dealing with these poor Americans trying to bring in prescription medicines bought cheaper in Mexico - no free trade there, (limited trade).
2007-11-20 19:03:52 · answer #3 · answered by Dave M 7 · 0⤊ 0⤋
Free Trade is a market model in which trade in goods and services between or within countries flow unhindered by government-imposed restrictions. Restrictions to trade include taxes and other legislation, such as tariff and non-tariff trade barriers. Reductions to these barriers is trade liberalization.
Much pro free trade argument is based on the comparative advantage analysis of classical economist David Ricardo, which holds that free trade results in an equilibrium state of maximum economic efficiency.
Free Trade can be contrasted with protectionism, which is the economic policy of restraining trade between nations, through methods such as high tariffs on imported goods, restrictive quotas, a variety of restrictive government regulations designed to discourage imports, and anti-dumping laws in an attempt to protect domestic industries in a particular nation from foreign take-over or competition.
Governments often call managed international trade agreements "free trade", and although this is not really free trade, such treaties may result in freer trade.
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
For more detailed arguments in favor of and against free trade, see: Free trade debate, http://en.wikipedia.org/wiki/Free_trade_debate
2007-11-20 04:50:47 · answer #4 · answered by Zenith 2 · 0⤊ 0⤋
When you trade for free. Um, did I just answer your question,, Sheesh! you people are going to hell in a hand basket quicker than I can say bleep me!
2007-11-20 01:42:22 · answer #5 · answered by Anonymous · 0⤊ 0⤋
That would be able to use the same currency of any choice given for a person . The able/equal right not to be affended for want was given.
2007-11-22 17:35:39 · answer #6 · answered by HollyBerry 3 · 0⤊ 0⤋
not having tariffs and export fees on goods.
letting them have their natural price.
2007-11-19 15:17:50 · answer #7 · answered by BonesofaTeacher 7 · 1⤊ 0⤋