International Trade Operations Essay Example | Topics and Well Written Essays - 1250 words

International Trade Operations - Essay Example Different countries enter into free trade agreements and there are different international trade organizations which support and promote free trade. Different school of thoughts have different perceptions and viewpoints about the free trade. According to one school of thought it is beneficial for overall growth and development of the different countries of the world. On the other hand, according to the second school of thought free trade is only beneficial for the developed and rich countries (Fridell, 2010). The supporters of the free trade are of the view point that it results in increasing competition and thus lower the prices. Apart from this, it results in increasing innovation and new products because of the competition. The domestic companies no more have monopoly in the market because of the government support like subsidies and quotas (Fridell, 2010). Fair trade means that the organizations indulge in trade by paying the legal and fair prices to the producers of the goods in different developing countries. The concept of fair trade is being promoted in order to make sure that all producers are paid the appropriate price for their hard work. Fair trade results in equity in international trade and works for the development of appropriate trading and working conditions in developing countries (Archer & Fritsch, 2010). The concept of fair trade generated from the fact that in some developing countries the working conditions are not appropriate and producers are ready to sell their products at low costs. This in turn results in damaging the working conditions more and benefits the organizations buying the products at low costs (Archer & Fritsch, 2010). For this purpose there are fair trade certifications. These certifications make sure that the products being traded are produced keep in consideration the standards and regulations regarding labor,