Under free trade agreements, prices emerge based off of supply and demand since the market is deregulated. While tariffs and other barriers to trade used to be widely enforced, since the mid-20^th century, governments have greatly reduced restrictions to international trade.

It was on this day, January 4^th, in 1960 that Norway and Switzerland signed the European Free Trade Association into existence at a convention in Stockholm. Iceland and Liechtenstein later joined the association.

The EFTA states have jointly agreed upon free trade agreements with a number of other countries. Three of the four members—Norway, Iceland, and Liechtenstein—are also a part of the European Union International Market.