Business Assignment 1
Fair Trade Issues
To begin, I will identify some of the major issues regarding
fair trade practices and issues effecting businesses. First,
governments want a high quality of life, higher standard of living,
and fuller employment for their citizens. The objective of fair trade
is to realize these objectives. A question arises when looking at
business practices if fair trade actually exists. The end result is
that as government has intervened fair trade practices become a bit
more convoluted and complex. Businesses find that fair trade is not
as simple as it should be. Tariffs, taxes, restrictions, and laws
imposed by the government by have increasingly burdened making the
trading of goods and services free and fair.
Second, it is thought that fair trade restrictions placed upon
foreign goods lowers the standard of living for American consumers.
As, trade barriers, quotas, and tariffs represent the equivalent of
hidden taxes imposed upon the end consumers of those goods. As such,
it raises the cost of those foreign products consumed to the end user
placing an inequitable burden on those least able to afford it. The
United States does not stand alone in limiting fair and free trading
among businesses throughout the world. A case in point is the World
Trade Organization (WTO), the international body dedicated to the
promotion of free trade which does not allow small business
participation only large corporations.
Third, International corporations with headquarters in one
country may operate mainly in other countries. Such practices provide
much of the controversy surrounding the fair trade practices of
businesses worldwide. These large multinational corporations are
avoiding the restrictions, taxes, and tariffs imposed by governments
when directly doing business within other countries. Many of these...