Free trade is an economic policy where governments do not restrict imports or exports between countries. It promotes international commerce by reducing barriers such as tariffs, quotas, and subsidies.
Imagine going shopping with no restrictions - you can buy anything from any store without having extra fees added at checkout. That's what free trade does on an international scale!
Tariffs: Taxes imposed on imported goods and services, acting like entrance fees at your favorite amusement park but for products entering a country.
Trade Barriers: These are measures that governments or public authorities introduce — like taxes or regulations — that make imported goods or services less competitive than locally produced ones. They're like bouncers at clubs deciding who gets in based on specific rules.
Globalization: The process by which businesses or other organizations develop international influence or start operating on an international scale, like a local restaurant chain expanding to have locations around the world.
What influenced Adam Smith's ideas about free trade as expressed in "The Wealth of Nations"?
Who advocated for free trade and economic liberalism during the Enlightenment?
What economic system emerged in Europe during the late-18th century promoting free trade and competition?
Which organization was formed in response to post-war economic instability and aimed at promoting free trade among its member states?
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