Free Trade or Fair Trade?

         Trade is one part of the process of economy which one person or entity sell their goods or service for another in exchange for goods,services or money. We can said that another synonym of trade is financial transaction. Usually people or entity sells their goods or services in a provided place, named market. Trading is the economic process  by which a product finds its end users. Here we would like to describe two international policy that affect all countries in the world. Free trade and fair trade were two terms that addressing the same subject but different perspective. Free trade and fair trade have a common ground. Both of the terms have the advantages and the disadvantages. 

First, free trade is an international policy that exemplified by European Union and North America Free Trade Agreement which the governments did not restrict export and import. Government give free taxes (including tarriff) or other trade barries (like quotas and subsidy) and also access to market without regulated. Free trade make countries concentrate with their manufacture or develop products and provide good services. The best result of free trade is when their own products can be enter others for such exports. According to Rama's opinion, free trade is a better option for international trading policy rather than fair trade. He has argument that trade has the best option to develop another country. He said that trade of goods without taxes or other trade barriers will give advantage for nations. 

Meanwhile, Delinda's opinion and I was different from Rama's opinion. Both of us believe that free trade was just give the powerful country with better economy will get the advantage of free trade. Free trade doesn't cover condition of the labor. That's why we think that free trade policy didn't give an equitable part of the system. We would like to describe what is fair trade. Fair trade is a social organization that focus on the wages, producers in developing countries and also the condition of the labor. It gives a greater equality in international trading with transparency, dialogue and respect. There will be no exploitation in developing countries from developed countries, Moreover, it was more fair rather than free trade. We should try a new policy that can help our world economy, even can make it better than before. Maybe fair trade was new for everyone but we can try t apply it first to makesure the efficiency. Free trade was not bad also, actually if both of the term were being mixed up, it will be better for our world

Regards,

Mailin, Delinda and Rama

References:

http://en.wikipedia.org/wiki/Fair_trade

http://en.wikipedia.org/wiki/Free_trade

http://economyincrisis.org/content/free-trade-fair-trade-whats-the-difference