02 trade theory-1.pptVIP

Trade Theory 5.2.1 Free Trade Free Trade means that countries can trade with one another wherever they are in the world, and sometimes it is termed International Trade, which means that goods and services could be exchanged freely between countries with no barriers to this exchange. Assumptions of Free Trade No barriers of any kind would be imposed upon entry of the goods to any markets. The selling price would be the ‘economies price’ In fact, it is an idealised situation which very rarely, if ever occurs in the real world. Free Trade A country could not impose a restriction on another