Free Trade vs. Fair Trade

Free Trade vs. Fair Trade Name Academic Institution Class Professor TIME \@ "MMMM d, yyyy" August 31, 2019 The ability to trade is important for countries as this way countries can import goods and services they cannot produce while also exporting surplus of the goods they produce. The globalization phenomenon has amplified inter-country trade as goods and services/ labor can easily move around the world as opposed to in the past. Different countries adopt various strategies to trade, and this comes in the form of either free trade of fair trade. The pros and cons of these two approaches have been debated by politicians, policymakers, academics, and the common citizens alike. An evaluation to find out the comparison between these two approaches to trade is undertaken, the strategy being adopted more by the United States highlighted while judgment is also passed on which approach could be better and reasons for such assertions. Free trade argues for reduction or complete removal of trade barriers such as tariffs so that good and services can move freely between borders depending on market forces as well as the capacity of a country to produce a certain good or service. Free trade is believed to result in expansion and offer opportunities for growth and development, and this is supported by economic theories that state that free trade results in net gain for all the involved parties. Fairtrade on the other hand calls for expansion of trade albeit under certain controlled conditions. Under fair trade, uncontrolled trade is believed to have potential to result in loss of jobs and possible importation of goods that don’t meet requisite standards. Fairtrade therefore controls the growth of trade to avoid higher social costs that could potentially come with increased trade, in t...