1. I have minimal prior knowledge about this topic but I have heard and read stories about fair trade in the past. I believe fair trade is international trade in developing countries in which fair prices are paid to the producers. I know that trade isn’t all fair thus workers don’t always get a reasonable share of their profits however fair trade prevents such injustice in the market. Additionally, I choose this topic because I want to major in international business and fair trade is dealt with on an international level which allows me to learn more about the global market. 2. Fair trade began as early as 1940’s after World War II with churches selling crafts to wealthier people in order to aid those in need. To encourage economic expansion Western Europe began importing goods from Eastern Europe. Meanwhile in the US, the Mennonite Central Committee created a crafts-selling institution that was later called ‘Ten Thousand Villages.’ Such organizations planned to reverse the profits received by the middle men to the craftsman in developing counties. In 1988 when the value of coffee heavily dropped, the Max Havelaar Foundation was the first to begin independent fair labeling in the Netherlands. Other British groups began to join and form the Fairtrade Foundation, which later became the Fairtrade Labelling Organizations (FLO) in 1997 as more nations united. In addition, United States opened its own fair labelling organization in 1998, named the TransFair USA. Nonetheless many American consumers are unaware of fair trade labeling unlike Europe and United Kingdom. Many people debate on perceived benefits of fair trade because it has a cost that can be seen as both beneficial and harmful. Selling fair trade products guarantees a min... ... middle of paper ... ...t to determine if all the beans are certified. Second, the prices are inflated for people to stay in the coffee making business instead of progressing into other industries that may be more profitable in the long run. Third, fair trade appears to be a good way to limit competition for wealthy counties such as Europe and US. Miller states that fair trade has helped many people facing poverty but with consequences. Both articles clarify the benefits of fair trade but the costs overweight the positives pushing me against free trade. I believe the points both authors have stated portray clear evidence of how free trade does not aid all of the farmers, especially the poorest ones. After this assignment my viewpoint of free trade has shifted, although I still think that free trade is beneficial in order to guarantee customers purchases are receive back to the producers.
Wright, L. T., & Heaton, S. (2006). Fair Trade marketing: an exploration through qualitative research. Journal of Strategic Marketing, 14(4), 411-426. doi:10.1080/09652540600948019
Trade is the most common form of transferring ownership of a product. The concepts are very simple, I give you something (a good or service) and you give me something (a good or service) in return, everyone is happy. However, trade is not limited to two individuals. There are trades that happen outside national borders and we refer to that as international trading. Before a country does international trading, they do research to understand the opportunity costs and marginal costs of their production versus another countries production. Doing this we can increase profit, decrease costs and improve overall trade efficiency. Currently, there are negotiations going on between 11 countries about making a trade agreement called the Trans-Pacific
Fair trade should give protection to governments from exploitation. For example, small farmers can be protected by giving government food sovereignty. An article from the Chicago Democratic Socialist Organization proposed, “The agreement must return to governments the ability to safeguard food sovereignty by protecting family and small-scale subsistence farmers” (Chicago Democratic Socialist). Rewriting the agreement can protect the small farms and retain jobs for farm workers. The article further addressed an issue discussed previously, “Large-scale importation of basic grains into Mexico is a major cause of the economic collapse of rural communities, which forces millions of undocumented migrants to seek work in the USA” (Chicago Democratic Socialist). Therefore, it would solve problems both in the US and Mexico. It will take efforts of the many to renegotiate NAFTA, and many other terms needs to be added. The general direction should focus on protecting the interest of the general public by restricting corporate powers. Fair trade will reduce the problems caused by
...ystem primarily responsible for promoting global competition. Free trade also promotes shifts in production so as to fit the “comparative advantage” model. Though free trade is widely practiced concerns with how to regulate free trade, something supposedly unregulated, countries have to subject themselves to the controversial institutions of the IMF and WTO. Fair trade policies while potentially creating smaller markets support workers’ rights in both the U.S. and developing nations. Though the pros and cons of globalization continue to be debated the United States can no longer escape its role in the global economy nor can it impose policies that are detrimental to the United States founding ideals. However policies that play towards the advantages of both free and fair trade could stimulate a healthy domestic economy that is also competitive in the global market.
Even in a world focused on the benefits free trade and aimed at achieving the goal of free trade, states are protectionist by nature. Unfortunately, the design of the international system allows for stronger nations to be more protectionist, leaving the weaker states even more vulnerable. A study that is more intensive than a critical commentary should be devoted to analyzing the impact of free trade on developing nations. I was limited to the readings and prior knowledge, and thus couldn’t provide a sufficient analysis on the fair treatment of developing nations. I was skeptical of the one reading that focused on fairness of international institutions because of the statistics that indicate these nations have not done well in recent decades. I would like to look into this more given more time and resources.
Free trade was a political doctrine that emerged in the eighteenth century as opposed to then reigning mercantilism. Its basic premise is that the restrictions imposed by governments on the voluntary exchange of goods and services harm the economy
The movement particularly emphasizes on exports from developing countries to developed countries, with products such as handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, chocolate, flowers and gold. Moreover, coffee is one of the most widely traded goods in the world. For many developing countries, coffee trade is an important source of income. Producers can provide a better trading and improve terms of trade. Moreover, this allows producers to improve workers’ living environment and future life in general (De Pelsmacker, Driessen and Rayp, 2005).
Free trade is a form of economic policy which allows countries to import and export goods among each other with no government interference. In recent years there has been a general consensus in economist’s stance on free trade. They view free trade as an asset. Free trade allows for an abundance of goods with increased varieties and increased availability. The products become cheaper for consumers and no one company monopolizes an industry. The system of free trade has been highly controversial. While free trade benefits consumers it has the potential to hurt manufacturers and businesses thus creating a debate between supporters of free trade and those with antagonistic positions.
While free trade is supposed to mean that governments do not interfere with trade by applying policies to affect trade, all governments do intervene in trade to give their country an increased financial advantage. The effects of the government policies are further discussed as well as how those policies affect free trade.
Free trade in today’s economy allows so much more than just jobs and goods at lower prices for Americans. Compared to the foreign competition, the free trade benefits outweigh any risks the foreign competition might impose on the US. As said by Denise Froning in her article, free trade benefits in four ways. “Free trade promotes innovation and competition, Free trade generates economic growth, Free trade disseminates democratic values, and Free trade fosters economic freedom.” Societies that enact free trade policies create their own economic enthusiasm, nurturing freedom, job opportunities, and success that benefit every citizen. Free trade is the only type of fair trade because it offers consumers the most choices and best standards to improving their type of living. Also by fostering opportunitie...
We begin our study of free trade by understanding the four principles of individual decision making.... ... middle of paper ... ... Edge, Ken, “Free trade and Protection: advantages and disadvantages of free trade” NSW HSC online http://www.hsc.csu.edu.au/economics/global_economy/tut7/Tutorial7.html#more Accessed November 29, 2011. Net Aparijita, Sinha, “What are the disadvantages of free trade?
“Fair trade is much more than a buying relationship,” Heyl said. “It’s about developing holistic communities and retaining wealth and talent and education in villages in India”. The model is especially significant for helping women. Heyl said in some communities, women aren’t allowed to leave the house without a man. Everything all at once.
Mohan, S., 2010. Fair Trade Without the Froth: A Dispassionate Economic Analysis of ‘Fair Trade’ [online]. London: Institute of Economic Affairs.
In conclusion, Fair Trade provides reasonable amount of evidence that it is a great way to improve the lives of the workers. Reading more about Fair Trade gives the consumers a better understanding of how to help those who work under horrible conditions. Going out of our way to buy foods that are a little higher than usual would not hurt us. Personally, after researching Fair Trade, I would try my best to go to whole food markets in order to buy food products that are a little higher than regular price.
Fletcher, I. (2011). Crumbling of Free Trade – And Why it’s a Good Thing. Retrieved from