What type of policy is designed to remove barriers to trade?

Study for the Arizona State University MGT302 International Business Exam. Prepare with flashcards and multiple choice questions, featuring hints and explanations for each. Get exam-ready with ease!

The type of policy designed to remove barriers to trade is known as free trade. Free trade encourages the flow of goods and services between countries without the imposition of tariffs, quotas, or other restrictive regulations. By promoting free trade, nations aim to foster economic growth, enhance efficiency, and provide consumers with a wider array of products at competitive prices. This policy is based on the idea that when countries specialize in producing what they can most efficiently, and then trade for other goods, all participating economies benefit through a more efficient allocation of resources.

The other options suggest policies that impose restrictions or maintain barriers to trade. For example, protectionism involves the use of tariffs and quotas to protect domestic industries from foreign competition. Isolationism focuses on minimizing a country's involvement in international affairs and trade, often with the goal of self-sufficiency. Conservatism, in this context, typically refers to political or economic philosophies that may not emphasize free trade principles. Thus, free trade stands out as the policy explicitly aimed at removing trade barriers and enhancing economic collaboration between nations.

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