Ridwan

1710111217

Bahasa Inggris Bisnis (Lokal AB)

Free Trade

Free trade is a trade policy that does not restrict imports or exports, it is the idea of the free
market as applied to international trade. Most nations are today members of the World Trade
Organization (WTO) multilateral trade agreements. However, most governments still impose some
protectionist policies that are intended to support local employment, such as applying tariffs to imports
or subsidies to exports. Governments may also restrict free trade to limit exports of natural resources.
Other barriers that may hinder trade include import quotas, taxes, and non-tariff barriers, such as
regulatory legislation. European union is classical example of free trade. All countries what belong to
European Union they have absolutely free trade between other EU countries, there are no import duties
and restrictions. Example you can send goods from Germany to Sweden with free of import duties,
there doesn’t exist import custom procedures either. But all countries what doesn't belong to EU, they
are considered as a third countries, and if EU country import example from China, then importer need
to pay import duties and conduct import procedures and requirements.