Free trade vs. Fairtrade

Global trade liberalization seemed to be a solution to the high-priced commodity market as it encourages competition among produces. Despite this, some still oppose such market autonomy and as a result, fair trade was introduced with intentions of safeguarding the producer from industrial countries. Albeit it seemed a good idea cooperate started using it as a disguise and exercised less than fair practice. Employing an analytical view of fair trade vs. free trade this discussion will infer which one is better. Through the struggle for ecological sustenance and commercial coexistence, numerous trade policies have been developed in regard to globalization (Hebert, 2016). The objective of these policies is to reduce tariff burdens on importers. However, this raised ethical value questions,s and thus fair trade was introduced.

Free trade implies trade liberalization with no interference from the government in the form of tariffs, regulations, taxes or quotas (Fridell, 2012). This practice allows producers to manufacture, yield and sell their products in and outside their domestic frontiers. Free trade presents numerous benefits to the consumers because with increased competition from within and outside the domestic producer are only left with one option in order to survive and that is to produce a high-quality product at affordable prices. This implies that the consumers have freedom to choose from a variety in the market. Despite the benefits of consumer free trade leads to monopoly in the international market from corporation originating from industrial countries.

The other matter of concern in relation to free trade is the cost related to environmental of damage this implies that in long run consumers have to pay a heavy price as compared to the benefit wide variety and low-cost product.

On the other hand, fair trade helps producers from developing economies to compete with products from developed economies. This counters free trade as it implies that products from developing nations may be priced above average to direct high profits toward such producers with the help of the government. This practice eliminates middlemen and thus producers from developing countries reach the final consumers. The main objective of fair trade is the maximization of profit by decreasing overhead and increasing sales thus it promotes invention and innovation. In the long run, the fact is all governments either from the developed economy or developing economies has one key aspiration and that is to achieve fairness in trade. This is crucial to any government in order to solve the different issues plaguing the trade market over fair trade or free trade depending on which favors the belief system of such nations. Based on the above discussion the point highlighting ‘what is and ‘what should be’ in regards to both approaches its clear fair trade is far much better than free trade. Even with the concept of comparative advantage the issues of free trade vs. fair trade is still relevant.
References
Fridell, G. (2012). Free trade and Fair Trade.  Introduction to International Development Studies: Approaches, Actors and Issues, 279-294.
Hebert, D. J. (2016). Free Trade Vs. Fair Trade.