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Since there is no direct governmental intervention, it would permit trading partners attain mutual gains from exchanging goods and services.
As it has been defined by International Fair Trade Association (IFAT), “fair trade is a trading partnership based on dialogue, transparency and respect that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to and securing the rights of, marginalized producers and workers, especially in the south”. (www.wfto.com).
Fair trade is of protectionist view which maintains a ‘people first’ policy and is backed by consumers through various non-profit organizations. Fair trade looks forward to achieve better justice in international trade by initiating reasonable changes in the current trade regulations. Its trading practices are entirely different from that of the conventional mode of trade. For instance, fair trade system works on the voluntary participation of producers, consumers, and companies based on a set of mutually accepted standards (Fair Trade Catholic Relief Services).
On the other hand, the most important focus of the free trade is profit which usually goes to corporate giants. Hence, in order to create competitive advantages free trade firms seek alternatives for reducing the operation costs by moving from one region to other cost-effective locations. Unlike free trade, fair trade organizations maintain maximum direct relationship with the producers perhaps by giving them free or low interest credit (ibid). The common goods exchanged through fair trade include coffee, chocolate, clothing, and jewelry.
Both fair trade and free trade have their own advantages and disadvantages. One of the major benefits of the fair trade is that it promotes eco-friendly farming practices and helps farmers and artisans gain opportunities for building their own business skills.
Obviously the notable benefit of the free trade is that it allows us both
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The four broad categories include physical, emotional, sexual and financial abuse. They all work hand in hand at destroying the psychology of the person being abused. There are very many factors that have contributed to the growth of domestic abuse all over the world.
Empirical evidence was gathered from the Statistics Agency of the Republic of Kazakhstan, ILO reports and CIA World Factbook. The country has been improving economically for over a decade up to the present. However, its people have low productivity while foreign investors have managed to take control of some of the oil reserves.
On the contrary to the policy of laissez-faire, protectionism has been always traditional to the economy of the USA, being advocated during most time of the American history. Lately the meetings of G20 countries have been finalized with conclusions to decline protectionism, emphasizing its destructive influence.
It is often seen that the benefits derived by one party who is a member of the Trade agreement is at the detriment of other countries' products or services, and this could result in trade imbalances which could affect the economies of the relevant countries.
While poor countries and development agencies have been battling at international conferences for a change in world trade rules, a parallel initiative has emerged that aims to harness Western consumers' addiction to coffee and chocolate in the fight against poverty.
There is a growing importance for small and medium-sized companies to market internationally, which implies the need for a strategy such as relationship marketing. This need is exemplified by concern of international business for an increase in turnover, turnover leveling in cases of weak economy, and intensive knowledge of competition and market possibilities (Theodosiou and Leonidou, 2003).
1)”. Addressing the economic and trade issues which the nation is faced with today, Obama said that, “It’s time for new policies that create the jobs and opportunities of the future– a competitiveness agenda built upon education and energy,
With low import-export restrictions, international trade has increasingly become a revolutionary practice. Today, promoting free trade is a global affair. However, the prospects of free trade are not without a costly side.
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