Free trade means freedom from both private and government coercion

How does one obtain property from others if one is not allowed to steal it from them?

Capitalism -- the social system based on individual rights -- says that one may obtain property from others in only one way: by their voluntary consent. By banning the initiation of physical force capitalism leaves only one way for men to deal with each other: through the peaceful means of persuasion, by appealing to another's self-interest. This form of dealing with others is the highest form of voluntary social cooperation, and is known as trade.

What is trade?

Trade means the voluntary exchange of values between two parties, toward their own mutual benefit. Voluntary means that no force is initiated by either party; that both parties enter the trade of their own free-will, with no guns, no knives, or no fists pointed at their heads, hearts, or backs. Mutual benefit means that both parties enter the trade of their own free-will, since they think they both think they will be better off by trading then if they didn't.

What does trade mean for the buyer?

For the buyer, trade means that one is free to buy on whatever terms the buyer finds agreeable. If the buyer does not like the seller's offer, the buyer is free to refuse, and is free to go somewhere else, or is free to produce the good himself, if he is so able. No one is morally allowed to physically force the buyer to change his terms of buying against his will, by threatening to expropriate the holdings of his bank account, or by threatening to imprison the buyer, if the buyer does not voluntarily agree to the terms.

What does trade mean for the seller?

For the seller, trade means that one is free to sell on whatever terms others voluntarily agree to. If the seller does not like the buyer's offer, the seller is free to refuse, and free to find another buyer. No one is morally allowed to physically force the seller to change his selling terms against his will, by pointing a gun to his head, or by threatening to fine him a million dollars a day, or by threatening to imprison the seller, if the seller does wish to change his terms of sale for his property.

Under what conditions does a trade take place?

A trade -- a voluntary exchange of values between two (or more) parties for their own mutual benefit -- takes place only when the seller and the buyer agree to the same terms of exchange of their own free-will, i.e., free from the threat of physical violence and fraud.

How does free trade give rise to free competition?

It is this freedom to produce and trade -- free from the threat of physical violence by private members, or public officials -- that gives rise to capitalist free competition, as sellers compete with other sellers to exchange their goods for the buyer's money; and buyer's compete with other buyers to trade their money for the seller's goods.

What is the meaning of competition under capitalism?

Competition under capitalism, is simply the right to life, liberty and property applied to the sphere of production and trade; free competition means that one is free to take an any action, unmolested by others, which does not violate the rights of others. This is the meaning of competition. In observing what competition is, please observe what it is not. It is this free-competition that gives rise to capitalism's free-market.

Does free-competition mean that the producer serves the consumer's interests at the producer's expense?

Free competition does not mean that the seller, must serve the buyer's interest, if those interests are not his own. Free competition does not mean that the buyer, must serve the seller's interest, if those interests are not his own. What free-trade under free-competition means is that when their interests do coincide, they make an exchange of values.

Does free-competition mean that no producer will ever win?

In regards, to a competitive rivalry between two producers in any given industry, free competition does not guarantee that one will always win, or ever win in any business endeavor. It only means that if one attempts to enter any trade, that no one will physically interfere in ones business by threatening (or actually using) physical violence against someone else).

What specific relationship does free competition refer to?

Free competition refers to the relationship between those who wield the power of production -- businessmen -- and those who wield the power of destruction -- criminals and government officials. Free-competition means that the first -- producers -- are free from the initiation of force from the latter -- criminals and businessmen. It means that if you do produce a product, that no robber, or statist power-seeking politician can expropriate it. It means that if you own a good then you -- and only you -- choose how to dispose of that good -- free from the coercion of others.

Does free-competition mean an equal playing field?

Free competition does not mean an "equal playing field". It does not mean that you will not face smarter competitors, faster competitors, competitors with more capital, competitors who are more productive.