MANAGEMENT

Detailed explanation-1: -free trade, also called laissez-faire, a policy by which a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports).

Detailed explanation-2: -A Free trade Agreement (FTA) is an agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights, among other topics.

Detailed explanation-3: -A country’s trade policy covers taxes imposed on inspection regulations, import and export, and tariffs and quotas. Under this policy, the government protects domestic manufacturers from foreign competition.

Detailed explanation-4: -Essentially, free trade enables lower prices for consumers, increased exports, benefits from economies of scale and a greater choice of goods. This explains that by specialising in goods where countries have a lower opportunity cost, there can be an increase in economic welfare for all countries.

Detailed explanation-5: -FTAs are treaties between two or more countries designed to reduce or eliminate certain barriers to trade and investment, and to facilitate stronger trade and commercial ties between participating countries.