Free trade is an economic policy that allows businesses in different countries to trade without government interference, such as tariffs or import quotas.
Think of free trade like a group project where everyone can contribute their ideas freely. There are no barriers or restrictions on whose idea can be included, leading to a more diverse and potentially innovative final product.
Tariffs: Taxes imposed by a government on imported goods. They make the foreign products more expensive and less competitive compared to domestic products.
Trade Barriers: Government-induced restrictions on international trade, such as tariffs, quotas, and regulations.
Globalization: The process by which businesses or other organizations develop international influence or start operating on an international scale.
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