This means that this nation has adopted the mechanisms of a capitalist market economy.
In a free-trade economy, there are no barriers against competition, government acts only as regulator, to maintain favorable conditions. Companies compete for price. Consumers are the main beneficiaries, because they will pay the lowest price possible.
It is the free market. Moreover, in this type of economy international trade is free, that is, there is no customs tariff, the country can export and import whatever it takes.
