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Write an essay on Free Trade vs. Fair Trade
The concept of fair trade
The concept of fair trade
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Part A
I drink coffee almost every morning, yet I have never thought about the coffee industry or the process involved with the coffee trade. What I am aware of is that the coffee production is usually revolved around Africa and North America, which are destinations that are not as economically developed as New Zealand. In terms of fair trade coffee, I have never considered using it, as I did not know that there was such a system. I only purchase coffee depending on the brand; the taste would be assured, as it is popular with the majority. I also look for cheap prices and products that are on special. Even if the coffee product I purchase is fair trade, I would have only bought it because it is on special or popular with the mass. After
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Whereas, Free trade is an international system in which nations allow open trade to other countries. I believe that Fair trade is more sustainable, as it balances economic states and reduces the disparity between developed and developing nations. Fair trade supports farmers and workers who are not receiving the amount they should receive, it helps balance the economic state with developed countries. The system aims to aide the economic and social welfare of under developed nations and empowers producers who have been externalised. Fair trade not only supports economically, but also sustains families, communities, livelihood and a way of living in which they inherited from their …show more content…
The two peoples opinion on fair trade was different as they were either for or against Fair trade. One person stated that the taste and cost is what matters; the coffee has to be of good quality, yet affordable. He would consider purchasing Fair trade coffee if the price was low and the taste was assured, not for the sake of Fair trade but for the quality of the coffee. Although, he knows that buying Fair trade coffee benefit the economically disadvantaged, he is not willing to purchase such products as he states that his life is his priority. He mentions that he is busy living his life and trying to support his own livelihood, that he does not have the time or the autonomy to help
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
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
Free trade comes with its share of pros and cons. It is responsible for increased economic growth, better business environments, encourages investment
...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.
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).
As defined by the Fair Trade Foundation, fair trade is a social movement which focuses on providing reasonable prices, sustainability in locality, friendly and decent working conditions, and equitable terms of trade for workers, farmers and other producers in the developing world. Fair trade started in early 1940s with a vision to provide equal rights for the producers of poverty-stricken communities around the globe. It started with some European and US organisations which sold their handicrafts and other goods at a fair price in developed countries which eventually lead to the formation of a fair trade labelling system started in 1990. Modern fair trade protects the farmers and producers of tropical commodities like coffee, palm oil, banana, tea, cocoa, etc. from the multinationals and the middlemen exploitations. Fair trade is about improving the position of producers within the poorest nations and also the nations which are developing so that they could sell their goods on a global market, which in fact would make their economy stronger and more vital.
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...
Free trade can be defined as the free access of the market by individuals without any restriction or any trade barriers that can obstruct the trade process such as taxes, tariffs and import quotas. Free trade in its own way unites and brings people together. Most individuals love the concept of free trade because it gives them the ability to move freely and interact in the market. The whole idea of free trade is that it lowers the price for goods and services by promoting competition. Domestic producers will no longer be able to rely on government law and other forms of assistance, including quotas which essentially force citizens to buy from them. The producers will have to enter the market and strive into to obtain profit.
In today’s American culture, coffee is one of the number one go to drinks for many occasions. Most drink it for the morning hours to gather their energy for a long day out in the corporate or academic world, while others may drink it for social occasions, or even to calm their nerves instead of spike them. It is so engrained in our culture that pictures of mothers, students, teachers, and workers taking a long satisfying sip of the drink are not hard to conjure up in our minds, whether we’re young or we’re old. According to the International Coffee Organization, over 9.02 million bags of coffee grounds were purchased all over America in 2017. The beauty behind these purchases is the diversity of each cup of coffee that was made with these bags
The act of trade itself has had very little impact on the environment. It is the resulting increased economic activity that destroys local ecosystems and exhausts natural resources. However, increased economic activity also is the main driving force behind growth and production, which is vital to a poor community. As such, I am hardly attacking free-trade policies, only analyzing their environmental implications, of which there are many. For example, sugar cultivation and trade had an enormous impact on the American tropics beginning in the late 17th century and lasting over a century. In the early 1640's, the Dutch began transporting slaves and agricultural technolo...
The idea of (fair trade) started in the early nineties of the twentieth century, when some organizations have adopted European and American institutions, the idea represented in achieving a fair price for the products of small farmers and exporters of agricultural materials
Fair Trade is considered as an alternative trading system, which aims to protect the economically disadvantaged producers, especially in developing countries. It provides transparency and respect in international trade (Gingrich and King, 2012). Besides, Fair Trade also contributes to sustainable development by offering better trading conditions for marginalised producers and workers and securing their rights (Mohan, 2010).
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.
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.
Free trade is a policy that relies on the concept of comparative advantage that when comparing two countries one of those countries will have the capability to make a product that is better than the other country. So it is best if each country focuses its efforts and resources into one product to increase the economic activity for both countries. The determination of who produces a product better is based on the open market without intervention from a government who may try to control a trade by imposing government protective measures such as tariffs. The World Trade Organization has been tasked with monitoring free trade, but it has been noted that their policing has not been effective to stop such interventions. Free trade not only relies on a laissez-faire approach but also on assumptions of conditions. The assumptions used by many for economic theories are not always accurate but rather the justification for using the assumptions is so that economic theories can be applied for the greater good of an economy.