What do we mean by "Free Trade"? Response 1 of 4: Free trade refers to the absence of barriers to the free flow of goods and services between countries.Free trade refers to the absence of barriers to the free flow of goods and services between countries. Response 2 of 4: Free trade refers to the movement of goods and services between countries in accordance with the product life cycle.Free trade refers to the movement of goods and services between countries in accordance with the product life cycle. Response 3 of 4: Free trade refers to trade between countries with low or zero price points. Free trade refers to trade between countries with low or zero price points. Response 4 of 4: Free trade refers to the free movement of goods and services without a clear direction. Free trade refers to the free movement of goods and services without a clear direction