Trade Liberalization

AAA

DEFINITION of 'Trade Liberalization'

The removal or reduction of restrictions or barriers on the free exchange of goods between nations. This includes the removal or reduction of both tariff (duties and surcharges) and non-tariff obstacles (like licensing rules, quotas and other requirements). The easing or eradication of these restrictions is often referred to as promoting "free trade."

INVESTOPEDIA EXPLAINS 'Trade Liberalization'

Those against trade liberalization claim that it can cost jobs and even lives, as cheaper goods flood the market (which at times may not undergo the same quality and safety checks required domestically). Proponents, however, say that trade liberalization ultimately lowers consumer costs, increases efficiency and fosters economic growth.

RELATED TERMS
  1. North American Free Trade Agreement ...

    A regulation implemented on Jan. 1, 1994, that decreased and ...
  2. Shock Therapy

    A sudden and dramatic change in national economic policy that ...
  3. Terms of Trade - TOT

    The value of a country's exports relative to that of its imports. ...
  4. Trade War

    A negative side effect of protectionism that occurs when Country ...
  5. General Agreement On Tariffs And ...

    A treaty created following the conclusion of World War II. The ...
  6. Trade

    A basic economic concept that involves multiple parties participating ...
Related Articles
  1. Adam Smith: The Father Of Economics
    Economics

    Adam Smith: The Father Of Economics

  2. Do Cheap Imported Goods Cost Americans ...
    Economics

    Do Cheap Imported Goods Cost Americans ...

  3. What Is The World Trade Organization?
    Economics

    What Is The World Trade Organization?

  4. What is Globalization?
    Investing

    What is Globalization?

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center