Topic > Importance of Fair Trade - 2192

Governments institute protectionist policies to promote fair trade. These policies are designed to discourage imports through tariffs, quotas, and other trade barriers, to prevent foreign takeover of domestic industries and markets. The intention is to protect domestic businesses, thus helping the national economy. Which seems like a good thing. However, the United States uses its formidable economic power to implement these policies that directly harm foreign economies and indirectly harm its citizens. Traditionally, trade is defined as the voluntary exchange of goods or services. This leads to the question: what is fair trade? In 1822, Senator John Taylor wrote that it is “free will that constitutes an equitable exchange.” Consumers do not voluntarily pay higher prices, but through protectionist policies, governments force them to pay more. Trade barriers give politicians control of the market and allow them to determine where their constituents spend their money. This bastardizes property rights laws and impedes freedom. Trade barriers allow the government to take from consumers to benefit producers. Fair trade assumes that consumer rights are an injustice to the producer. Through protectionist policies, a government forces consumers to support a company that cannot stand on its own. Protectionism is based on the idea that a government will become richer if its citizens are forced to pay higher prices for fewer goods. Every government restriction forces resources to be allocated away from efficient industries. Protectionist policies are harmful to consumers and the economy.a. Success of CVD-free countries (or free countries) based on the Heritage Foundation's Economic Freedom Index compared to the country's GDP per capita. http://www.heritage.org/index/b. Consider the decline of the United States on the list and the increase in economic problems. VII. Ethics. Despite the ineffectiveness of protectionism, some argue that it is ethical because it protects the jobs of some citizens.b. Protectionism is unethical because i. violates individual rights ii. interferes with the ability to move freely