What is the objective of free trade?

The objective of free trade is fundamentally to eliminate protectionist policies that can hinder international commerce. By removing tariffs, quotas, and regulations that restrict trade between countries, free trade aims to facilitate a more efficient allocation of resources, enhance competition, and promote economic growth. This environment allows goods and services to be exchanged freely across borders, leading to a wider variety of products available to consumers and often lower prices due to increased competition.

In a free trade system, countries can specialize in producing goods and services where they have a comparative advantage, which ideally results in increased overall production and consumption efficiency. This is a key principle behind the economic theories advocating for free trade, as it not only benefits consumers through lower prices and greater choice but also encourages innovation and domestic growth by opening markets to a broader range of goods and services.

The other options relate to concepts that are contrary to the principles of free trade. Imposing restrictions, ensuring fair pricing through regulations, or limiting foreign investment would all introduce barriers that free trade seeks to eliminate.