Fair Trade

Fair Trade

  • Submitted By: Lenora100
  • Date Submitted: 11/28/2009 6:15 PM
  • Category: Business
  • Words: 696
  • Page: 3
  • Views: 1

 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...

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