In a free trade relationship, the following types of trade occur:
1. Exports: These are goods or services that are produced domestically and sold to other countries.
2. Imports: These are products or services that are brought into a country from other nations.
In a free trade relationship, there are no restrictions or significant barriers such as high tariffs or quotas on these types of trade. This allows for the smooth flow of goods and services between countries, promoting economic growth and efficiency.
The terms "domestic" and "taxed" are not directly related to types of trade in a free trade relationship. "Domestic" usually refers to goods or services produced within a country, while "taxed" may refer to goods that are subject to taxes or tariffs when imported. In a free trade scenario, the aim is to reduce or eliminate such taxes to facilitate trade between nations.
