Free trade

Free trade is the untaxed flow of goods and services between countries, and is a name given to economic policies and parties supporting increases in such trade.

Footnotes

1 Officially, the 1933 bilateral-barter policy was designed to ensure that foreign countries bought as much from industrial Germany as she bought from them. However, Milton Friedman has argued (http://www.freetochoose.net/lecture1n.html) that Hjalmar Schacht's exchange controls were primarily designed to restrict capital flight.

Related Topics:
¹ - 1933 - Germany - Milton Friedman - Hjalmar Schacht - Exchange control

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3 Only in rare cases are transfer payments to the producer actually contemplated. When they have been used, transfer payments have taken the form of short-term government aid. The World Trade Organisation allows some temporary relief measures, but permanent payments to relatively high-cost producers in order to make tariff-repeal Pareto optimal are not politically attractive. The result of ruling out "compensating" payments is that the economic interests of producers and consumers are opposed "within" a country considering her trade policy.

Related Topics:
³ - Transfer payments - World Trade Organisation - Pareto optimal

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