Question

question 2 of 10
what is meant by the phrase \free trade\?
a. that companies are expected to make less profit
b. that there are no shipping costs within those countries
c. that international business is not limited by tariffs or quotas
d. that products traded between those countries are at no charge

Explanation:

Free trade refers to a situation where international business is not restricted by tariffs (taxes on imports/exports) or quotas (limits on the quantity of goods traded). Option A is incorrect as free trade doesn't imply companies make less profit. Option B is wrong because it's about international trade, not shipping costs within a country. Option D is incorrect as products in free - trade are not necessarily free of cost, just not restricted by tariffs/quotas.

Answer:

C. That international business is not limited by tariffs or quotas