Question

what is the differences between free vs.fair trade and when should we use either approach?

Answer 1

--> Free trade calls for more freedom within the international trade market. The focus is on removing restrictions, tariffs, and regulations placed on the import and export of goods. This is done with the goal of enhancing the efficiency of global markets and improving the overall economic growth of involved nations. The problems associated with free trade include job losses,tax havens, vulnerability of weak sectors etc.

--> The main goals of Fair Trade are to reduce exploitation in the trade market, reduce violations to human rights and the environment, and empower producers to be able to support themselves. This is done by securing the rights of marginalized groups through better wages and improved working conditions. Advantages inlcude no child labour, better wages for workers, community investment, better working conditions etc. Problems associated with fair trade inckude higher price levels, limited access to fair trade etc.

-->we can use either approaces depending upon the situation by weighing cost benefits by countries.