Economy

What is free trade? »Its definition and meaning

Anonim

The free trade within the economic sphere, can spread to the internal trade which is the equivalent of free enterprise. In a free market economy or economic freedom refers to the absence of obstacles that prevent the access of economic agents or commercial activity where an individual or a company can carry out with total freedom without the presence of obstacles or special rules that the They limit, they can also express different freedoms such as freedom of prices, freedom of schedules, freedom of opening establishments and freedom of contract.

The free trade is the opposite way to protectionism as regards the economic policy that protects domestic production and trade recorded entry into the country of foreign products and is based on the absence of tariffs is the attribute that applies to the goods, which are objects of import or export and in any way in commercial or contingent ways, quota that is predicted from the states of affairs, the facts, the events or the proposals of government regulations, theoretically sanitary or quality requirements.

The free trade involves the removal of artificial barriers to voluntary trade between individuals and companies from different countries where the expression of the position librecambista which is the economic doctrine against protectionist in developing a policy to protect the products from the country itself.

In the free trade zone, the countries that sign the contract undertake to cancel each other's border tariffs as well as the prices of all commercial products because in this way a country cannot increase the price of goods produced in another country that is part of the free trade zone.