GLOBALIZATION FAIR TRADE V. FREE TRADE

TODAY’S OBJECTIVE AFTER TODAY’S LESSON, STUDENTS WILL BE ABLE TO… EXPLAIN THE VARIOUS TYPES OF GLOBAL TRADE AND DISCUSS THEIR ADVANTAGES AND DISADVANTAGES ESSENTIAL SKILL: DEMONSTRATE UNDERSTANDING OF CONCEPTS

TYPES OF TRADE PROTECTIONIST FREE TRADE FAIR TRADE

PROTECTIONIST RESTRAINING TRADE BETWEEN COUNTRIES THROUGH POLICIES SUCH AS TARIFFS OR QUOTAS TRADE EMBARGO PARTIAL OR COMPLETE PROHIBITION OF COMMERCE WITH ANOTHER COUNTRY USED TO APPLY DIPLOMATIC PRESSURE OR AS A PUNISHMENT IMPORT QUOTAS LIMIT ON A QUANTITY OF GOODS THAT CAN BE IMPORTED INTO THE COUNTRY USED TO PROTECT DOMESTIC SELLERS

FREE TRADE POLICY WHERE COUNTRIES DO NOT RESTRICT IMPORTS FROM, OR EXPORTS TO, OTHER COUNTRIES ADVANTAGES? DISADVANTAGES?

FAIR TRADE GOAL IS TO HELP COUNTRIES IN DEVELOPING NATIONS ACHIEVE BETTER TRADING CONDITIONS AND PROMOTE SUSTAINABILITY ADVANTAGES? DISADVANTAGES?

ORGANIZATIONS NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) FREE TRADE BETWEEN U.S., MEXICO, AND CANADA THAT HAS GREATLY INCREASED TRADE BETWEEN THE THREE COUNTRIES WORLD TRADE ORGANIZATION (WTO) AN ORGANIZATION THAT REGULATES INTERNATIONAL TRADE EUROPEAN UNION A SINGLE MARKET FOR EUROPEAN STATES THAT ENCOURAGES FREE MOVEMENT OF GOODS, SERVICES, AND PEOPLE INTERNATIONAL MONETARY FUND (IMF) MONITORS THE WORLD’S MONETARY AND FINANCIAL SYSTEMS WORLD BANK MAKE LOANS TO POOR NATIONS TO REDUCE GLOBAL POVERTY

FREE TRADE OR FAIR TRADE? WHICH TYPE OF TRADE IS BETTER?