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vodomira [7]
4 years ago
7

What does it mean if a nation has adopted free trade?

Social Studies
2 answers:
SpyIntel [72]4 years ago
6 0
Most nations when they import goods from another country the importing country charges a tax called a tariff. When parter countries drop the tariffs for imported goods that is called free trade
Delicious77 [7]4 years ago
3 0

This means that this nation has adopted the mechanisms of a capitalist market economy.

In a free-trade economy, there are no barriers against competition, government acts only as regulator, to maintain favorable conditions. Companies compete for price. Consumers are the main beneficiaries, because they will pay the lowest price possible.

It is the free market. Moreover, in this type of economy international trade is free, that is, there is no customs tariff, the country can export and import whatever it takes.

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