Economics Trade Barriers Questions
Trade liberalization refers to the removal or reduction of barriers and restrictions on international trade, such as tariffs, quotas, and other trade barriers. It aims to promote free trade by allowing goods, services, and investments to flow more freely between countries. Trade liberalization is often pursued through trade agreements and negotiations, such as regional trade agreements or global trade organizations like the World Trade Organization (WTO). The concept is based on the belief that reducing trade barriers can lead to increased economic growth, efficiency, and welfare for participating countries by expanding market access, promoting competition, and encouraging specialization based on comparative advantage.