Both sides of free trade Research Paper Example | Topics and Well Written Essays - 1750 words

Both sides of free trade - Research Paper Example ironmental sustainability, the citification mechanism of producers in exporting countries and certification of products in importing countries and creating awareness of such products among consumers of the developed world (Singh, 2001). On the other hand free trade is a global effort to carry out international trade free of negative protectionist practices such as higher tariffs on imports, subsidies to domestic producers, foreign exchange restrictions, dumping cheaper goods abroad, imposing dubious standards on imports and import substitution by propping up unwieldy domestic industries. Theoretically free trade is based on neoliberal economic principles dating back to Ricardo’s argument on the principle of comparative advantage. Free trade and fair trade aren’t necessarily the same though some of the ultimate outcomes would converge. In fact divergences between the two are many and if free trade were practiced with full force indeed, fair trade would take a back seat. Globalization has been the catch word used by many who advocate free trade. Such people vehemently support all and everything in the name of free trade. On the other hand fair trade is a distant cousin of free trade. An inevitable aspect of this relationship between the two is that the former is marginalized while the latter is well placed at the center of the global market. Fair trade is essentially replete with intricate nuances ranging from market access facilitation processes to marginalized producers to sustainability efforts. Such noble principles need some theoretical and conceptual frameworks to support them though. Free trade theories are many while the principle of comparative advantage is the most predominant among them. The basis on which free trade is advocated by its supporters is determined by a series of arguments which in turn are associated with neoliberal perspectives. In the first place globalization is the logical premise used by supporters of international free trade to