Free trade is a situation in which there are no artificial barriers or restrictions placed by government upon the movement of commodities across their boundaries. Meaning, none of the forms of protections operate. Recent years have seen substantial international efforts towards achieving free trade.

Protection involves measures undertaken by governments to give local producers some kind of artificial advantage over their foreign competitors. It includes tariffs and non-tariff barriers such as subsides, bounties, quotas, administrative barriers and embargoes.

International Trade Agreements are agreements between nations to reduce both tariffs and non-tariff barriers to trade. International Trade Agreements are divided into bilateral (two nations) and multilateral agreements (involving more than two nations).

The advantages of free trade

- Higher living standards as a result of lower prices, increased quantities, and increased variety of goods and services. This involves a higher rate of economic growth and...