Which concept is the removal of trade barriers between nations?

• A. EU
• B. Economic Integration
• C. Free Trade
• D. FDI

Answer: (C)

Free trade is the idea of removing trade barriers between nations. When tariffs, quotas, and other restrictions are lowered or eliminated, goods and services can move more easily across borders. This tends to boost efficiency because producers specialize where they have a comparative advantage, increase competition, and give consumers more choices at lower prices.

The European Union is a regional agreement that removes many barriers among its member countries, but it’s one specific bloc rather than the general concept of trading freely between all nations. Economic integration is the broader process that includes free trade but also other steps like creating a common market or shared policies. Foreign direct investment involves a company investing in a foreign country, which is about investment activity, not specifically about removing trade barriers.