Fair Trade V. Free Trade

FREE TRADE vs. FAIR TRADE

1.) -------------------------------------------------

Please discuss any knowledge you had (or did have) about fair trade or “Fair Trade Certification” prior to discussion it in this class, and also discuss why you selected this option.

The world environment we find ourselves in these days is both shrinking and expanding. We have shrunk our time to acquire products, services, and even knowledge to the click of a mouse. Yet, we have also expanded our choices for these products, services and even information simply because of the globalization of virtually every event. Although the formal definition of globalization centers on free trade tenets; spot labor and capital markets, I believe that we must look past those limiting assumptions and think more “globally” like the following reference describes:

Globalization is the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen. The global economy is sometimes referred to as a globality, characterized as a totally interconnected marketplace, unhampered by time zones or national boundaries.

What is globalization? - Definition from WhatIs.com - SearchCIO.com

searchcio.techtarget.com/definition/globalization

Now, with a clear and realistic perspective we can consider the questions or “Free Trade vs. Fair Trade”. I believe the conclusion will center about three differing interpretations of the situation and its concomitant results I shall term “P.C.”

PC1: P.ersonal C.ost. In this rendering the lowest cost for the highest quality product or service should always be selected regardless of any impact on the producers or their local economy. This is largely Free Trade or in an extreme case, Laissez Fair Capitalism.

PC2: P.olitically C.orrect This is the choosing of products and services that more closely conform to some minimum standard of “fairness” for the producers and...