Free Trade refers to that state in which there is no restrictions on the movement of goods between countries. Restrictions placed with a view to safeguarding home industries constitute the policy of protection. In the words of Adam Smith, the term Free Trade has been used to denote "that system of commercial policy which draws no distinction between domestic and foreign commodities and therefore, neither imposed additional burdens on the latter, nor grants any special favors to the former." Free Trade, however, does not require the removal of all duties on commodities. It only insists that they shall be imposed exclusively for revenue and not at all for protection.
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