alleryStart learning →What is free trade?
ATrade in which no country charges any tax on its own firms
BTrade in which people and businesses buy and sell without restrictions
CTrade in which goods move only between neighbouring nations
DTrade in which payment is made in goods rather than in money
Answer & Solution
Correct answer: B. Trade in which people and businesses buy and sell without restrictions
1. Free trade is a policy about restrictions on buying and selling.
2. It permits the people and businesses of a country to buy and sell where they please.
3. It exists when nations allow citizens to trade whatever goods and services they choose without government regulation.
4. Payment in goods rather than money is countertrade, a separate idea.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 3 "Competing in the Global Marketplace", section 3.2 Why Nations Trade_
Keep practising Competing in the Global Marketplace
Browse all Competing in the Global Marketplace questions for BBA International Business, or explore more International Business topics.
Related questions
How many Sustainable Development Goals did the United Nations member nations adopt in 2015What defines a multinational corporation?How is Gross National Income defined?What is infrastructure?Why does business slow down in Muslim countries during Ramadan?What is nationalism?What is countertrade?What is direct foreign investment?