Future Business Leaders of America (FBLA) Agribusiness Practice Test

What do free markets emphasize in international trade?

1. Heavy regulation of goods and services

2. The movement of goods without obstruction

3. Complete government ownership of trade

4. Restricted competition among nations

The correct answer is: The movement of goods without obstruction

Free markets in international trade emphasize the movement of goods without obstruction. This principle is rooted in the idea that when trade is uninhibited by tariffs, quotas, or other barriers, it leads to increased efficiency, more choices for consumers, and greater potential for innovation and economic growth. By allowing the free flow of goods and services between nations, free markets encourage competition, which can lower prices and improve quality. This system supports the idea that countries should specialize in producing what they can efficiently and trade that for what they need, benefiting all parties involved. The other options do not align with the definition of free markets. Heavy regulation, complete government ownership, and restricted competition all suggest a more controlled approach to trade, which contradicts the core principles of free market economics that advocate for minimal interference from government entities.