AP World History: Modern

Free Trade Agreements (FTAs) are treaties between two or more countries to establish a free trade area where commerce in goods and services can be conducted across their common borders, without tariffs or hindrances.

congrats on reading the definition of Free Trade Agreements . now let's actually learn it.

Related terms

Tariffs : These are taxes imposed on imported goods and services. They're like the entrance fee you pay at a theme park - it's the price you pay to bring something into the country.

Bilateral Trade Agreement : This is an agreement between two countries to reduce trade barriers and increase trade of goods and services with each other. It's like two friends making a pact to share their toys freely.

Trade Blocs : These are groups of countries that have reached a specific trade agreement among themselves. Imagine if all your neighborhood friends agreed to share their toys freely only within your neighborhood - that's what a trade bloc does for its member countries.

" Free Trade Agreements " also found in:

Subjects ( 40 )