(The Kazakh National University Named After Al -Farabi and Suleyman Demirel University, 2008) Smirnova Elena
Today every country thinks about increasing efficiency through free trade. Free trade is a system in which the trade of goods and services between or within two or more countries flow unconstrained by govemment-imposed restrictions. Such goverment interventions generally increase costs of goods and services to both consumers and producers. Interventions include taxes and tariffs, non-tariff barriers, such as regulatory legislation and quotas. Free trade opposes all such interventions. One of the strongest arguments for free trade was made by classical economist David Ricardo in his analysis of comparative advantage. Comparative advantage explains how trade will benefit both parties (countries, regions, or individuals) if they have different opportunity costs of production