FREE TRADE VS FAIR TRADE FREE TRADE Investopedia

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FREE TRADE VS FAIR TRADE

FREE TRADE VS FAIR TRADE

FREE TRADE Investopedia defines Free Trade as: The economic policy of not discriminating against

FREE TRADE Investopedia defines Free Trade as: The economic policy of not discriminating against imports from and exports to foreign jurisdictions. Buyers and sellers from separate economies may voluntarily trade without the domestic government applying tariffs, quotas, subsidies or prohibitions on their goods and services. Features of Free Trade Trading of goods without taxes or other trade barriers Trading services Unregulated access to markets and market information Trade agreements

FREE TRADE Opposition Destroy infant industries in developing countries Long-run economic development Income inequality

FREE TRADE Opposition Destroy infant industries in developing countries Long-run economic development Income inequality Environmental degradation Supporting child labour and sweat shops Impacts domestically Produces economic growth Jobs are loss to developing countries, or outsourcing of jobs Production moved to developing countries Impacts globally Working conditions are very poor, along with wages Competition for contracts often lower the wage to be paid

FAIR TRADE Is a social movement whose stated goal is to help producers in

FAIR TRADE Is a social movement whose stated goal is to help producers in developing countries achieve better trading conditions and to promote sustainability Includes commodities and goods such as handicrafts, coffee, cocoa, wine, chocolate, textiles, diamonds and gold Effects on growers Benefits farmers in the global south Growers are able to understand fair trade Increases the wage of growers certified under fair trade practices However, many growers are unaware about fair trade and its benefits Positive effect on their lives and communities.

FAIR TRADE Social premiums where producers or producer-groups decide how their earnings is spent

FAIR TRADE Social premiums where producers or producer-groups decide how their earnings is spent Socioeconomic development Privately invest in public goods lacking from infrastructure and government spending Environmental initiatives, public schools, and water projects