Pros+and+Cons

Pros and Cons on Free Trade and Fair Trade.

Free trade refers to a general openness to exchange goods and information between and among nations with few-to-no barriers-to-trade. PROS: • Removal of trade barriers, such as tariffs, makes it easier trade between countries. The result is an increased volume of U.S. sales. • Free trade between the U.S. gives lesser developed countries access to U.S. money. • Less expensive materials make it easier to make a profit, or easier to sell because the product is cheaper.

• CONS: • Many American jobs were lost due to outsourcing. • Most free trade deals the U.S. made in the past have ended up to be bad deals.

Fair trade refers to exchanges, the terms of which meet the demands of justice. PROS: • The poorer people in the lesser developed countries are getting payed a living wage. • If the poor people in these countries are making a living wage, they can use that money to send kids to college and improve they’re overall living conditions. • Improved living conditions and education will lead to a better future for these countries.

CONS: • Restrictions such as tariffs can complicate, lessen, slow trade between countries. • Fair trade prices set prices artificially high, without knowing what is going on in the market, like oversupply.