I am doing a project on this topic and I am having some trouble finding the differences.
I need lots of help on this so as many answers as possible would be great!
2007-01-22 04:43:43 · 2 answers · asked by Savanha 2 in Social Science ➔ Economics
The answer to this question is that fair trade is free trade. People over the years have added a lot of fluff to this topic but when you investigate what it means to be fair trade and what it is to be free trade you'll see that they are the same thing. The reason why this is so is because of the theorm Adam Smith published. He said if poeple where to ack on their own self interests, that is, to do what benifits them the most, the most benifititial outcome for the whole society will come about also. This is the underlying pricipal of capitalism. The gov't should not interfer with the market and let it determine itself. When a gov't does not interfre with a market at all that market is said to be free. Now, ask yourself is it fair. Is it fair that a person can set his own prices on goods that he has lawfully made. Yes, it is. If he charges to much then people will stop buying it. This forces him to lower his price.
2007-01-22 05:35:00 · answer #1 · answered by Mr. DC Economist 5 · 0⤊ 0⤋
Free trade is what happens when people have the freedom to do what is best for them.
Fair trade is what happens when markets are disrupted by politically correct idiots who do not understand economics but who do want to lift money out of your wallet and increase poverty in developing nations just so that they can feel smug.
Hope that helps.
2007-01-22 05:33:50 · answer #2 · answered by KevinStud99 6 · 0⤊ 0⤋