gimpymoose14 (gimpymoose14) wrote in globaleconomy,

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Free Trade vs. Fair Trade

"I never thought that I could ever love a man so much...Thats right baby I'm going crazy, I need to be your lady" - Going Crazy

There is a debate between two types of trade, free trade and fair trade, which is discussed on Both sides can find common ground in that they would like to see more trade between countries, but how the trade is implemented is the critical issue. Fair trade believes that trade should specifically target the lower class, and find out ways to help them. In their opinion, if total free trade were to occur, the poverty level of countries would only worsen. Free trade, on the other hand, holds a completely opposite view. Targeting a specific group would be unnecessary to global trade because free trade would alleviate poverty in the first place.

Fair trade is somewhat a difficult term to define by even economists. Here is a direct quote from the website explaining fair trade, "Advocates of free trade sometimes oppose fair trade on the belief that the concept is incoherent. Suppose that an initial “fair” price for a company to pay workers could be agreed upon. But would the price (or wage) be fairer if it was higher? If it was lower? If higher, workers capturing the jobs at that wage would live better. If lower, more workers could benefit from being paid that lower wage. What conditions of fairness underlie the idea of a “fair” price?" This vague definition creates an odd situation as to how fair trade can be implemented. Basically, fair trade proponents see Third World countries getting the shorter end of the stick because free trade creates jobs that pay meager wages that are nowhere near sustainable living levels.

Apart from this one web page, there are several other links on the right hand side that discuss free trade and fair trade.
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