Since free trade does not involve restrictions, its advantages include economic growth for the countries involved and increased employment opportunities. However, the lack of restrictions can result in environmental pollution and ‘unfair’ trading opportunities for smaller business, most of whom will have a hard time competing with larger firms. Regarding fair trade, restrictions offer an advantage to smaller businesses. Fair trade also offers improved working conditions and better wages for workers. Moreover, fair trade usually supports producers by allowing them to benefit from the trade with the intentions of becoming competitive on an international level. On the downside, fair trade has the disadvantage of a limited amount of products to choose from, as well as expensive membership fees.

Nonetheless, I would personally vouch for fair trade over free trade mainly because of its imposed guidelines and restrictions, which are meant to protect both the economy and the environment. Without these guidelines,smaller businesses and developing nations would not enjoy equal business opportunities like larger firms. It is worth noting that larger companies can take over the trade market and create an unfair marketplace.

Comparative advantage demands that the ability to produce goods and services should be at a lower opportunity cost compared to other producers. Therefore, given such a position, the debate on fair versus free trade should be nonexistent. The reason for this isthat the manufacture of quality products ought to guarantee a reasonable cost of productionwhile maintaining workers’ welfare. Due to this compromise, the aspects of fair and free tradeare balancedsuch that countries benefit economically while making sure none of the stakeholders experience any loss. That is, the taxes are paid to the involved governments, and the consumers receive decent products, as well as workers being treated fairly.

References

Gillikin, J. (2018). Free Trade Vs. Fair Trade. Smallbusiness.chron.com, Retrieved from http://bit.do/eKsCm

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