What is an example of free trade?

Answer 1

An example of free trade would be a country that does not grow bananas, going out of the country and importing bananas from a country that does. Countries often trade what they are best at producing for those things that aren't easily produced.

Answer 2

An example of free trade is the North American Free Trade Agreement (NAFTA), which was a trade agreement between the United States, Canada, and Mexico that eliminated most tariffs and other trade barriers between the three countries. Under NAFTA, goods and services were allowed to move freely between the three countries without any restrictions, allowing businesses to take advantage of the strengths and resources of each country.

Another example of free trade is the European Union (EU), which is a customs union made up of 27 European countries that have agreed to eliminate tariffs and other trade barriers between them. This has created a single market for goods and services, allowing businesses in one country to sell their products and services to customers in other EU countries without any barriers.

Both of these examples of free trade have helped to increase trade between countries, promote economic growth, and improve living standards by allowing businesses to access larger markets, take advantage of cost savings from production efficiencies, and increase competition. However, free trade agreements like these can also have both positive and negative impacts on industries, workers, and the environment.

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