Advocates of free trade argue that eliminating trade barriers would help all nations by what means?

Eliminating trade barriers is a fundamental principle of free trade which advocates argue would benefit all nations primarily by ensuring that each country can focus on producing goods and services in which they have a competitive advantage. This concept is rooted in the theory of comparative advantage, which suggests that when countries engage in trade, they should specialize in industries where they are most efficient. This specialization allows for a more effective allocation of resources globally, leading to increased overall production and consumption.

When nations focus on products they can produce most efficiently, it leads to lower costs and prices for consumers, greater variety of goods, and innovation driven by competition. Furthermore, this can stimulate economic growth as countries export their specialized goods, bringing in revenue and fostering international relationships. By harnessing their unique strengths and capabilities, countries can enhance their economic performance and contribute to a more dynamic global economy.

The other choices do not align with the principles of free trade. Increasing tariffs would create barriers, providing subsidies might distort market efficiency, and limiting imports contradicts the idea of maximizing benefits through trade.