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Q.

What is mean by free trade?

Asked by Gautam, 19 Sep '08 09:17 pm
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Answers (5)

 
1.

A Free Trade Area of the Asia-Pacific (FTAAP) has been proposed as a long-term prospect by the Asia-Pacific Economic Cooperation. This paper examines the impact of the FTAAP on the national and regional economies in China using a suite of general equilibrium models: APG-Cubed, a dynamic global model; GTAP, a static global model; and CERD, a static China model with regional dimension. The impact on the Chinese economy of the APFTA is also compared with those of other forms of Free Trade Areas such as the ASEAN-China Free Trade Area and the East Asia Free Trade Area. China benefits from all three Free Trade Areas, and the eastern region gains the most. It is also found that Chinas benefit increases along with the increase in coverage of the Free Trade Areas, that is, the APFTA has the biggest positive impact on the Chinese economy, among the three Free Trade Areas considered in this study. Sector-wise, textile, clothing and footwear sector gains the most from the FTAAP, while the motor v ...more
Answered by Jairam Kshirasagar, 19 Sep '08 09:22 pm

 
  
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2.

Here you do not get money for trading.Everything is in credit.
Answered by darna kyon, 19 Sep '08 09:26 pm

 
  
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3.

A system in which the trade of goods between or with in two countries flows unhindered by Government-imposed restrictions.
Answered by jakir hussain, 19 Sep '08 09:24 pm

 
  
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4.

Free trade is a system in which the trade of goods and services between or within countries flows unhindered by government-imposed restrictions. Such government interventions generally increase costs of goods and services to both consumers and producers. Interventions include taxes and tariffs, non-tariff barriers, such as regulatory legislation and quotas, and even inter-government managed trade agreements such as the North American Free Trade Agreement (NAFTA) and Central America Free Trade Agreement (CAFTA) (contrary to their formal titles.) Free trade opposes all such interventions. Trade liberalization entails reductions to these trade barriers in an effort for relatively unimpeded transactions.

One of the strongest arguments for free trade was made by classical economist David Ricardo in his analysis of comparative advantage. Comparative advantage explains how trade will benefit both parties (countries, regions, or individuals) if they have different opportunity costs of produ ...more
Answered by dharamender nebhnani, 19 Sep '08 09:21 pm

 
  
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5.

Trade without any barriers?? No tariffs imposed?
Answered by joyoti sen, 19 Sep '08 09:20 pm

 
  
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