1. Should labor practices in another nation be a pertinent factor to consider in international trade? Why or why not?
Yes, labor practices in another nation need to matter for factor to consider in worldwide trade. The factor for issue is labor and social advocates has actually increased imports from countries in which labor requirements are apparently not enforced at a properly high level.
It is essential to have labor restrictions and remove unfavorable salaries and poor working conditions in the developed importing nations.
The low labor cost in developing countries is the result of poorly protected core labor rights. The trade is based on low wages and is often viewed as unmerited or prohibited. The International Labour Company estimates that 215 million kids ages 5-17 are participated in kid labor (ILO, Speeding up action versus child labour, 2010). An approximated 12 percent of children in India ages 5-14 are participated in child labor activities, consisting of carpet production (UNICEF, State of the World’s Kid 2010).
Approximately 6 out of ten slaves in the world are bonded laborers in South Asia (Siddharth Kara, Sex Trafficking: Inside business of Modern Slavery, 2008).
The United States has a strong concern to up hold global labor requirements. I think it’s an ethical obligation to foreign workers in addition to concern that low labor standards in other nations make unreasonable competitors for US. Also I would believe the majority of the United States people feel we must not enable items to be imported when they have actually been made under conditions in infringement of international labor standards.
2. With regard to trade items such as cocoa, what options are readily available to governments, services and customers for handling practices such as child labor or servant labor in other nations? What are the ramifications associated with each of these alternatives?
With regard to trade products such as cocoa, the government options are to set an international floor price of the product at the standard fair trade price. The set price will make the producers comply with the standard costs and which will be beneficial to the consumer at the end. Businesses will need to follow the standards and pledge that no child will experience slave labor in their work and production of products. If Business does not follow the practices we can boycott the products. Business should be investigated and held accountable. For the consumer to only purchase fair trade products until the item becomes a fair trade product. As consumers we can look at labels, be more aware of fair trade products. We can talk with our local grocery companies, coffee shops, and look for the fair trade products.
3. How would international trade theorists view the fair-trade movement?
Fair trade was supported by people who believed that there were inherent flaws in the capitalistic system and trading system around the world (Handmade Expressions) There are four fair trade labeling organizations developed by FINE, informal association: Fair trade International, World Trade Org, Network of European World shops and European Fair Trade Association (Fair Trade International site).
Fair trade is a market reactive system that wants to abolish global inhumane acts from child labor, poor working environments, low wages, and healthy working conditions. Fair Trade does not control the prices at a local level the producers need to work and communicate with the buyers to arrange a trade under agreed Fair trade stipulations. The movement intends to provide market access to otherwise marginalized producers, connecting them to customers and allowing access with fewer middlemen.
Resources
Goodweave Retrieved 2009-2012, from (Siddharth Kara, Sex Trafficking: Inside the Business of Modern Slavery, 2008) (ILO, Accelerating action against child labour, 2010) http://goodweave.org/child_labor_campaign/facts
Handmade Expressions Retrieved 2011 from http://www.handmadeexpressions.net/pages/fair-trade-controversies-and-theories
Fairtrade International Retrieved 2011from http://www.fairtrade.net/about_us.html
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