Free trade and globalization:

Free trade and globalization:

Trade barriers

Tariffs : Taxes imposed on imported goods to make them expensive

Quotas: Limits in quantity/value of certain goods

Voluntary export limits: An exporting country agrees to limit the quantity of goods sold to prevent tariffs/quotas

 

The moves to reduce the number of trade restrictions have led to globalization: greater freedom of movements of goods, capital and people around the world.

The world trade organization(WTO)

Principle of freeing world trade from restrictions

Regular meetings to discuss tariffs and quotas

Free trade blocs

Groups that have arranged to trade with each other withoutrestrictions

NAFTA, ASEAN

The members of European union