FREETRADE AREA Meaning and
Definition
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A freetrade area, also known as a free trade zone, refers to a designated geographical region or space wherein member countries or territories engage in unrestricted trade activities. It is an area where various trade barriers, such as tariffs, quotas, and import/export restrictions, are significantly reduced or eliminated among the participants. The primary objective of establishing a freetrade area is to promote and facilitate the flow of goods, services, and investments within the region while encouraging economic growth and integration among the member countries.
In a freetrade area, member states usually adopt preferential trade agreements or arrangements to lower trade barriers, making it easier for businesses to import and export goods or services within the zone. By liberalizing trade restrictions, such an area creates a more competitive business environment, encourages foreign direct investment, and fosters innovation and specialization of production processes. This format stimulates economic cooperation, collaboration, and mutually beneficial exchanges among the participating nations.
A freetrade area typically operates under specific regulations and policies established by its members to govern trade operations, customs procedures, and international standards. Certain freetrade areas may also impose common external tariffs on goods originating from non-member countries. It is important to note that a freetrade area is distinct from a common market or customs union, which involve deeper levels of economic integration, including the free movement of labor and harmonization of laws and regulations.
Common Misspellings for FREETRADE AREA
- freetrade area
- free-trade area
- dreetrade area
- creetrade area
- vreetrade area
- greetrade area
- treetrade area
- rreetrade area
- feeetrade area
- fdeetrade area
- ffeetrade area
- fteetrade area
- f5eetrade area
- f4eetrade area
- frwetrade area
- frsetrade area
- frdetrade area
- frretrade area
- fr4etrade area
- fr3etrade area
Etymology of FREETRADE AREA
The word "freetrade area" is a compound noun formed by combining the words "free" and "trade" with the addition of "area".
- "Free" comes from the Old English word "freo" meaning "exempt from, not in bondage" or "of a noble family". It has roots in Germanic and Indo-European languages.
- "Trade" comes from the Middle English word "traden" which means "to give in exchange" or "to deal or traffic". It originates from the Old English word "tredan" meaning "to tread, step or go".
- "Area" has Latin roots and is derived from the Latin word "area" meaning a "level part of a surface" or "open space".
So, the etymology of "freetrade area" suggests a designated region or location where trade is free or unrestricted.
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