An example, in trade policy, is that trade liberalization benefits the majority of consumers without their lobbying for it. This may tip policy in the direction of protection, for which there are fewer free riders. A situation in which there are no artificial barriers to trade, such as tariffs and NTBs . Usually used, often only implicitly, with frictionless trade , so that it implies that there are no barriers to trade of any kind. For a traded homogeneous product , it follows that domestic and world price must be equal.
Free zone See foreign trade zone .
See destabilizing speculation . The absence of natural barriers to trade, such as transport costs.