When no tariffs are imposed on all imports and exports, it is called:

🧠 Explanation:

Free trade refers to the absence of tariffs, quotas, or other restrictions on imports and exports between countries. It promotes open markets, encouraging economic efficiency, competition, and consumer access to diverse goods at lower prices. Rooted in economic theories by Adam Smith and David Ricardo, free trade fosters global integration, as seen in agreements like the World Trade Organization’s frameworks or regional pacts. While it drives growth and innovation, critics argue it can harm local industries and exacerbate inequalities. Free trade remains a cornerstone of modern global economics, shaping international commerce and policy.