NovelNiche

A trade policy of placing no restriction on the movement of goods between countries is known as free trade. Such a policy permits the flow of international commerce in its natural environment, free of artificial impediments. It denotes that system of commercial policy which draws no distinction between domestic and foreign commodities, and therefore neither imposes additional burdens on the later not grants any special favors to the former and thus freedom of international exchange. A policy of free trade however does not require the removal of all sorts of duties on the commodities in international exchange. It insists that duties maybe imposed exclusively for revenue and not at all for protection Free trade is economically comparative because it permits allocation of resources, and manpower in accordance to the principle of comparative advantage, which is just an extension of the principle of division of labor. Because of natural and other facilities, each country is suited fo...