Question

Free trade _______.

A. rejects the laissez-faire stance toward trade and maintains that it is not in the best of a country
B. is in direct contrast to the notion of the invisible hand as advocated by Smith
C. refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from other countries
D. formed the basis for the mercantilist philosophy

Answer 1

The correct answer is letter "C": refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from other countries.

Step-by-step explanation:

Free trade is an agreement between countries to tear down the barriers that impede the free flow of products and services among their territories. This pact implies reducing or eliminating tariffs and quotas between those countries to facilitate trade.

An example of a free trade zone is the North American Free Trade Agreement (NAFTA) signed by Mexico, the U.S., and Canada by which those countries organize their efforts to create a zero-tariff trading block setting standards for the operations of their companies and allowing products manufactured by the three countries to be inexpensive among those territories.

Answer 2

The correct answer is C. refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from other countries .

Step-by-step explanation:

Free trade is a characteristic of a market through which some "freedoms" are granted in order to encourage the transit of products and services in order to offer it to a greater number of people. Governments establish a series of rules to achieve fair competition within a specific market, always seeking to protect the national industry from abroad. These treaties allow a greater movement of merchandise flows and encourages trade at the local, national and international levels.