A free-trade agreement is unlikely to result in the productivity decline in an economy.
What is the free-trade agreement?
- An agreement to lower import and export tariffs between two or more countries is known as a free trade agreement.
- A free trade policy allows for the purchase and sale of products and services across international boundaries with little to no restrictions from the government in the form of tariffs, quotas, subsidies, or bans.
- In the modern world, free trade agreement is frequently carried out by the official and mutual agreement of the participating countries.
- A free-trade policy, however, may simply mean the lack of any trade barriers.
- To advance free trade, a government need not take any special measures.
- Trade liberalisation or "laissez-faire trade" are terms used to describe this laissez-faire approach.
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