NONPR OFIT n


Fair Trade vs. Free Trade MORE THAN JUST POLITICS


Jeremy Mocek, FInancial Advisor


O


f the many heated topics surrounding the upcoming election, one of great significance is each candidates’ proposed policies on global trade. Hillary Clinton maintains the position that “free trade” with continued reduction of geopolitical barriers between nations is the key to global economic growth. On the contrary, Donald Trump describes his position as “fair trade” — economic growth among nations stimulated by regulated wages, improved working conditions, and a direct approach to global commerce.


Understanding the differences between the two trade platforms and the respective effects on American businesses is important:


Free trade primarily focuses on written trade policies


between countries. Major steps taken to achieve effectiveness include the reduction of tariffs and quotas on imports and exports, a multi-party supply chain, and diminished labor and environmental standards. In the United States, the practice of free trade mainly benefits large, multinational corporations with powerful global business interests.


Fair trade emphasizes commerce among individuals and businesses to maximize


economic efficiency. Tis applies a business model to global trade. Fair trade offers producers favorable financing from businesses and establishes long-term business relationships through a much shorter and direct supply chain. Fair trade policy in the United States primarily benefits smaller players in the economy: farmers, small business owners, and other skilled laborers.


Free trade and fair trade are fundamentally different in platform and effect on U.S. business. Te upcoming election of a presidential candidate will impact global trade. Understanding the differences may assist in making your decision this November.


ambassadoradvisors.com • 9


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12