Free Trade

Business, Legal & Accounting Glossary

Definition: Free Trade


Free Trade


Full Definition of Free Trade


Free trade is a legal arrangement or a policy implemented by the nation according to which the market model is set up. According to the terms of free trade, the goods or services traded between or within countries are not impeded by restrictions imposed by the government. These restrictions may include taxes and tariffs as well as other non-tariff restrictions like import quotas, import tariffs, trade embargoes, export subsidies, manipulation of foreign currency exchange rates by political means and discriminating regulatory legislation that proves disadvantageous for foreign buyers and foreign sellers.

The theory of free trade was first initiated by Adam Smith. David Ricardo, a prominent economist, is one of the strongest supporters of free trade.


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Definition Sources


Definitions for Free Trade are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 28th March, 2020 | 0 Views.