Intro+to+Free+Trade+vs.+Fair+Trade

__INTRO TO FREE TRADE VS. FAIR TRADE__ Free trade is a way of trade that lets labor and goods freely flow between the nations without any barriers affecting the trades. Any trader can carry out business without the government getting involved. In a free trade system, prices depend mainly on supply and demand rather than government regulations. This is different from other types of trade because in other systems the government intervenes. For example, the government can set taxes on any good that they would like. In free trade the government does not set those mandates. In a system like this all prices are based on supply and demand. In free trade there are no barriers that could affect trade in anyway. During free trade anything from goods to labor trade can go between nations without being affected by the government.
 * What is free trade?**


 * Dilemmas Involved With Free Trade**
 * In a free trade system, many jobs are being outsourced. It is cheaper to pay the low price for labor in other countries than to pay for them to be made here in the United States.
 * Many people believe that free trade doesn't support American jobs. Since it's cheaper to pay for labor outside the United States, many companies have been paying foreign manufacturers to produce goods.
 * Another problem with free trade is that many people think that the American producers cannot fairly compete with labor from other countries. The labor in other countries is cheaper than labor in the United States. Since it is cheaper, businesses in the United States pay for the cheaper labor rather than the labor from the United States. American workers can't lower their prices or they won't make enough money to support themselves so they aren't used as much as foreign labor.
 * Lastly, free trade causes many people to worry about their job security. Many jobs are leaving the United States so people are becoming concerned that they will loose their jobs.

Check out Free Trade for more information on this topic.


 * What is fair trade?**

Fair trade is a way of trading that promotes equality, fairness, and respect to all traders. It looks to producers in other countries to get the amount that they deserve for their work. In a fair trade system, traders look to pay producers more than what they are usually given. They also try to help the producers do what they need to in order to improve their business and general life style.


 * Dilemmas Involved With Fair Trade**
 * In a system with fair trade, costs could skyrocket to unaffordable heights. This would happen because labor in the United States costs more than foreign labor. If companies have to pay more for labor then they will raise prices to make up for the deficit.
 * Fair trade can also prevent high profits for companies. If they have to raise prices to pay for labor then in some cases less people will by the product, leading to lower profits.
 * In a fair trade system some individuals and companies can be at a disadvantage. The employers would have to pay more for the labor and the resources, possibly leading to job cuts or a lower income for some workers. Also, some companies that produce non-necessities will not have as many people paying for their products, leading to a lower profit, if any.

Check out Fair Trade for more information on this topic.

Also visit these pages Socialist and Capitalist Views Trade Liberalization Trade Regulation Pictures page

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