Free trade refers to the policy of not having any fees or restrictions on trade of goods and services between countries. This means that countries do not apply tariffs for imported goods and do not financially subsidize exported goods to other countries. This allows for greater competition, productivity, and economic growth.

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What Is Free Trade

Question 17

Multiple Choice

What is free trade?

A) When nations trade goods and services directly without any exchange of monetary currency.
B) Exchanges of goods and services across democratic states.
C) An international policy where a country does not apply fees (tariffs) for its imported goods or financially subsidize its exported ones to other countries.
D) Trade that is not forced or coerced by violence or intimidation.

Correct Answer: