International trade Operations individual 5 - Essay Example

Different countries have varying tariffs and perceptions on international trade which may affect the business positively or negatively. Researching before hand can guarantee a business profits by maximizing on countries with good free and fair trading conditions. Introduction International trade has changed much over the last decades. Most countries have gotten to agreements which ensure free and fair trade among them. Countries and individuals producing the various products in their respective countries benefit a lot.

Some people have become rich as a result of international trade. However, there are goods which are better traded on the international front compared to others. Businesses and individuals looking to succeed in the international market should focus on goods that do better in that market. At the same time, they must have good marketing strategies; understand the difference between free and fair trade and who benefits in what trade. Concepts of Free Trade Free trade is trade focused between countries and large companies.

Different countries agree on tariffs and taxation of the imported and exported goods with the objective of enhancing economic growth among countries. In fact, the main principle of the free trade is comparative advantage to countries and multinationals with agreements with each other. Businesses involved in these trades are usually very powerful and influential that the governments do not have much control over them. The agreements made are not necessarily good for the primary producers. In fact, most are the cases the primary producers are affected by the free trade negatively.

Policies governing free trade agreements are made by the respective country governments under the influence of the large multinational companies (Nolen and Quinn, 1994). Concepts of Fair trade Free trade is different from the free trade in that it puts emphasis on the producers of goods (World Fair Trade Organizations, 2009). In most cases, the producers receive less compared to the end buyer and the brokers. The recognition that the primary producers are disadvantaged led to proposals to ensure they benefit better for their hard work.

Fair trade attempts to enable the small scale producers and cooperative to become income sufficient and ownership. This is done by ensuring that fair trade buyers are available and can buy the products at a good price. Organizations involved with far trade ensure that fair trade practices are followed accordingly. On the side of the producers, they have to ensure good working conditions for the entire worker regardless of their gender and race. They also have to ensure they follow international guidelines on wage and labor.

In this case, they have to pay all the workers well and ensure that all workers are grown ups. Another thing free trade incorporates is the respect for the environment. Primary producers are tasked to protect the environment and enhance environmental protection (Renard, 2003). Some businesses have taken advantage of the fair trade for their own selfish gains raising questions whether indeed fair trade is fair (Maseland & Vaal, 2002). Fairly Traded products There are quite a number of fairly traded in the world according to Fair Trade International.

Milk is not among the fairly traded goods internationally (Fair Trade International, n.d). However, there are some countries and multinationals which have successfully implemented fair trading of milk and milk