Globalization

Video: Fair Trade vs. Free Trade – http://www.bigpicture.tv/videos/watch/ca46c1b95
(In relation to previous article on the cost of free trade)

Response to the video – Fair trade vs. Free Trade

After watching the video, I have a better understanding of the difference between free trade, and fair trade. I agree with Paul Rice on the advantages of fair trade, versus free trade. Through economic globalization and free trade, people in developed countries, definitely benefit from free trade. However, those in the developing world do not benefit from free trade as much. Hence the phrase – the rich gets richer and the poor gets poorer.

Fair trade conversely helps make free trade work for the poor. Fair trade does not negate the advances that free trade that made. As its name suggests, it not only incorporates the advantages of a globalized economy, but it does not leave the developing countries behind.

It is also good to know that the World Trade Organization is increasingly looking into a fairer world trading system. This way it is possible for globalization to reduce poverty rates. It is quite appalling to know that there are still people around the world who are living in poverty.

For us in Singapore, we are hardly aware of the plight of the less fortunate in third world countries. After watching the video, I better understand why fair trade should be used over free trade, and the advantages that it brings. We should try our best to help the less fortunate in any way that we can, hence being able to progress as a whole world.