main features of free trade


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PDF Benefits and threats of free trade

The main argument for trade liberalization is that exposing country's economy to international competition leads to greater efficiency [Black et al 2009] 3

  • What is the main goal of free trade?

    FTAs are treaties between two or more countries designed to reduce or eliminate certain barriers to trade and investment, and to facilitate stronger trade and commercial ties between participating countries.

Free trade reduces barriers to imports and exports of goods and services such as tariffs, quotas, subsidies, embargoes, and product standard regulations between member countries. The advantages of free trade are the development of economies of scale, increased competition, specialisation, and reduction of monopolies.
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