The assumption that new firms are permitted to enter an industry and can do so costlessly. Together with free exit , it implies that profit must be zero in equilibrium. The assumption that firms are permitted to leave an industry and can do so costlessly. See free entry . Free list A list of goods that a country has designated as able to be imported without being subject to tariff or import licensing.
Free port See foreign trade zone .
Free rider Someone who enjoys the benefits of a public good without bearing the cost. 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.