The global trade is a
big business today and it will grow even more important throughout the
centuries. Trade relations adjust each nation to produce what it is most  proficient
of producing and to buy what it needs in a mutually beneficial exchange
relationship . While some similarities 
between free trade and fair trade are evident, the differences  are striking.

To start with , both
free trade and fair trade have the same objective of increasing wealth globally
. Free trade is fair trade because  international trade does not destroy
jobs, industries ,businesses , standards of living, or communities. To the
contrary, trade creates opportunities by creating jobs , expanding the size of
the market, increasing opportunities for manufacturers, encouraging demand for
products, allowing us to consume more, giving us more variety, and driving
economic growth. These
are both economic systems that concentrate on the purchase and sale of products
between countries and communities.

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On the other hand, the main difference between the two systems  is that free trade is about profits, meanwhile
fair trade is about people . Free trade is the transfer  of goods and affairs  among nations without political or economic
trade hindrance or barriers. In contrast advocates of fair trade argue that
trade between developed countries and developing countries is set  in favour of the developed country. They
believe trade should take place on more fair and equitable terms, with reciprocal
advantage resulting  in both parties. A proponent  of free trade would  argue against the protectionist measures and
subsidies with which certain industrialized countries  protect their agricultural producers against
competition from agricultural imports from developing countries. On the other
hand fair trade, contrasting free trade, could be in favor of maintaining
tariff blockades to protect producers in small countries who might otherwise have great difficulty in emulating with enterprises
in international markets.

Secondly, the supply chain between fair and free trade
differs considerably . Free trade has a complex supply chain, with many levels
between producers and consumers. On the contrary fair trade provides direct
partnerships that  considers the needs of
individual communities. Advocates of fair trade feel that tariffs are necessary
to protect national markets from foreign competition . Some of the arguments
they use are as follow : Tariffs save jobs and protect industries vital to a
nation’s security . Also to make competition fair ,we have to take mutual
measures . Critics of tariff policies or free trade advocates have other ideas
. Their principal arguments are as follows : Tariffs reduce competition and
restrain international trade . They increase inflation and thus raise consumer
prices . Debates over tariffs and trade restrictions are a major part of
international politics .

In conclusion, I would like to restate that free trade is
fair in the sense that both parties always benefit. But predominantly , free trade and fair trade are distinctly different in how they proceed , their supply
chain and their main focuses . As long as global trade opportunities grow more
interesting each day and expanding markets present great potential for trade
and development ,  “free trade vs fair
trade”  will remain one of the most
debated issues in the economy .


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