What economic policy aims to eliminate restrictions on international trade?

The concept of free trade refers to an economic policy that promotes the unrestricted exchange of goods and services between countries. This policy aims to eliminate barriers such as tariffs (taxes on imports) and quotas (limits on the amount of certain goods that can be imported or exported) that can hinder trade. By fostering an environment of free trade, countries can benefit from comparative advantages, leading to increased efficiency, lower prices for consumers, and greater variety of goods available in the market.

In contrast, tariffs and quotas are specific trade restrictions that governments impose to protect domestic industries and reduce imports, which runs directly counter to the principles of free trade. Dumping, which involves selling products in a foreign market at a price lower than their domestic market prices, is a practice that also does not align with the idea of fostering open international trade. Therefore, free trade is the policy that seeks to remove barriers and encourage the free flow of goods and services across borders.