What is the term for a condition between nations that imposes no economic restrictions on products traded?

The term "Free Trade" refers to a condition between nations that allows for the unhindered exchange of goods and services without imposing economic restrictions, such as tariffs, quotas, or other barriers. This concept is grounded in the belief that when countries engage in free trade, they can specialize in the production of goods where they have a comparative advantage, thus enhancing overall economic efficiency and consumer choice.

In a free trade scenario, nations benefit from increased market access and can expect lower prices for consumers, as competition tends to drive costs down. The availability of diverse products without restrictions fosters innovation and productivity, allowing economies to grow as resources are allocated more efficiently.

The other terms presented refer to concepts that involve some form of restriction or barrier. A tariff agreement typically involves mutual agreements between countries to impose or reduce tariffs on certain goods, which contradicts the principles of free trade. Trade protectionism is a broader strategy employed by countries to shield domestic industries from foreign competition using measures like tariffs and quotas. An import quota further limits the quantity of specific goods that can be imported, directly countering the free trade concept.