Final Blog Post: See the Problem. Make a Change. Buy Fair Trade.

There is no question that over the last few decades globalization and free trade have brought about unequal financial reimbursement and treatment to many laborers around the world. As Dick Meyer said, globalization has “allowed the corporate world to maximize their profits by seeking the minimum of standards.” The most common and well-known solution to this problem is fair trade. Although there may be flaws or improvements that can be made, it is ultimately the best, easiest, and most feasible resolution available right now. And there is no question that it helps many people around the globe. It’s popularity and positive effect on poorly paid and poorly treated workers can be done by you. All you have to do is be conscious of the problem, buy your usual products, but just make sure they come with the certified seal. It’s a simple as that.

With globalization has come free trade. Free trade is basically the ability for countries and companies to trade goods without being burdened by taxes and other tariffs. Because of this, it usually allows for easier flow of labor and supplies to go from nation to nation. This seems ideal because it creates more beneficial manufacturing methods as large corporations can produce more, lower costs, and improve the way many people live around the globe. Free trade also encourages competition among companies to ultimately create the best product. Sounds good, doesn’t it? But, the reality is quite different. Dick Meyer, who I interviewed, is an advocate for fair trade, has travelled around the globe learning about trade, been a part of numerous speaking engagements, and is the owner of a Fair Trade shop in Olympia, Washington. He remarked on free trade: “the free trade pacts have sought to maximize the flow of capital in the same pursuit while ignoring environmental standards thereby leading many countries to compete with each other to the ‘race to the bottom’ by appealing for manufacturing and production with lower wages, lower regulations.” This is a clear summation of how many companies are not producing products with fair treatment and wages in mind. They are only worried about themselves and their profit, and free trade has only encouraged this. Additionally, because free trade encourages competition, in many cases, it means that developing countries and those with little technological advances find it very difficult to compete in product production with larger and more developed companies and countries. These large companies created by free trade, also known as “super power companies," dominate the market, making the gap among the rich and poor even greater. Today, “the vast majority of the world’s population [is] living on less than $2 a day” in undesirable working conditions and harmful environments increased by uneducated, careless governments and greedy companies. Some of these “super power companies," as Dick Meyer mentioned, are the most common companies known today. The Gap, Nike, and Walmart, among many others, have been accused of using sweatshops to make their products, keeping their workers in horrible working environments and paying them very little. Specifically Nike has shown to pay their workers far less than minimum wage, and astonishingly, Nike would plead with local international governments to be released from having to pay these minimum wages because of the heavy financial burden it would be on the factories. However, their profit reaches upward of 550 million dollars in one year. Doesn’t that seem a bit contradictory? And, although this is just one company’s information about the issue, I am hoping that it gives you a taste of the increasing inequality that globalization and free trade have sparked in many corporations, which harm innocent laborers everywhere.

With all of these downfalls of free trade, we need an alternative, and that current alternative is fair trade. "Fair trade isn't a brand. It is a story," a lifestyle, as mentioned in the video below. There are several different fair trade organizations around the globe who all work toward the same cause in ensuring that farmers and artists in developing countries are paid a respectable wage for their work. They are able to do this by cutting out the middle man and setting a minimum fair price which workers are to be paid for their labor and production of a product. Setting a minimum price gives these farmers and artists more money to improve their products, their way of life, and ultimately better their own economy, country, and environment. Thus, by buying products that are specifically labeled “fair trade,” it ensures fair payment and fair working conditions for the laborer, and it also allows for the consumer to know he or she is supporting a good cause and not consuming and using products at the expense of others. Fair trade is definitely a good alternative and a way to express opposition to free trade and corporate domination. But, there are some improvements that should be considered for fair trade to become more common and the norm to ensure equality to all farmers and artists in the world.

As I have mentioned above and in my earlier blogs, fair trade is definitely a good deal and helps to treat everyone fairly. But in order for it to become a phenomenon, regularity, and necessary requirement, there are some improvements that should be considered. Some of the most common improvements that are being considered are the type of products. Currently, fair trade items are mostly centered around food – specifically coffee and chocolate, jewelry, trinkets, and clothing items. For this idea to catch on and create a larger, lasting impact, fair trade organizations need to consider widening their market and coming up with new ideas and improvements to appeal to many different types of people and consumers. Without doing so could lead to stagnation in salability. Another improvement that could be made is quality. A product’s marketability is only as great as its quality of craftsmanship and creation. If the items are undesirable and lack good craftsmanship, then the likelihood of them selling will be very slim. As fair trade items continue to sell and increase in popularity, continued evaluation and insurance that all guidelines and practices, which are unique to fair trade, need to be continuously monitored. This guarantees quality of products and ensures that farmers and artists are still receiving fair payment and treatment for their work. This could potentially become an issue as fair trade grows, because of increased numbers of fair trade farmers but lack of monitoring abilities. Dick Meyer also mentioned that in the future, “independent monitoring will be essential…to assure the consumer that what fair trade proclaims is being practiced.” Ultimately, one of the largest issues in debate today about fair trade is that it isn’t really solving the large problem at hand and sometimes promotes “over supply, low prices” of the common items which it sells. Most of the time it simply deals with the problem at the surface without creating a true, lasting solution to the unfavorable market and less than ideal treatment of workers. Although fair trade isn’t able to solve the problem at its root or completely eradicate the unfairness in free trade around the globe, it is still a definite step in the right direction. It’s definitely better than letting people suffer and doing nothing to help.

Despite the criticism that fair trade doesn’t solve the problem at the source, it still is beneficial. In addition to incorporating some of the improvements, as well as further input from the consumer, it is likely to become even more popular and well known around the U.S. and other countries in the world. While waiting for policymakers to make permanent changes to trade and its effects, or while waiting to gather enough people to lobby for change, or in addition to your campaign for change, fair trade can help. It is an alternative of the now. It is a way to deal with the inevitable globalization of our world, and do something with it to make it better. It is a way for you to help without depending on the aid or choices of others. Upon buying a fair trade product, it directly helps the farmer or artist immediately. That’s the beauty of lobbying against free trade through consumption. Not only does it allow for immediate aid, but it also lets governments know that you do not want to tolerate the current conditions. If enough voices are heard and enough people continue and start purchasing fair trade, it can make a difference. It can slowly prove to companies, which pay poorly and are guilty of putting workers in sweatshops, and governments that such treatment is not tolerated.

However, many times necessary change isn’t made because of laziness or having to work too hard, or simply the lack of desire to change because of the inability to directly see the problem. But, fair trade products tend exactly to that mentality. They are available in stores nearly everywhere you go: Fred Meyer, Safeway, Dunkin' Donuts, Starbucks, and Costco are just a few. You can simply buy your daily coffee from Starbucks, but spend a bit more to buy fair trade coffee made buy workers compensated for their labor. You don’t have to work too hard to help. Just choose to make the switch at the register. There's no harm in the decision to buy fair trade. It only helps many artisans overseas. If we all work together and support it, the fair trade mentality will become more prominent. And with prominence comes more benefit for these laborers as well as a stronger voice for a need for permanent change and trade equality.

As I mentioned earlier, the gentleman I interviewed, Dick Meyer, is the owner of Traditions Fair Trade Café. Such cafés are a perfect opportunity for you as the consumer to make conscious decisions to make a positive change in this world. His café sells clothing, shoes, food, coffee, books, decorations, and more; it is also home to many local musical performances in the area. The best aspect of this café is that you know that anything bought there comes from one of 60 countries and communities, made carefully by fairly paid workers. You too can make an effort and buy fair trade items from some of the well known stores listed above, or you can visit some of the nearby specifically fair trade stores around the area, such as Ganesh Himal Trekking & Trading Co. in Spokane, Washington. And with the World Fair Trade Day just around the corner on May 8th, 2010, now is the perfect time to make the effort and buy fair trade products, attend fair trade events, or support other fair trade organizations. Visit their website if you’d like a little more information: World Fair Trade Day

Overall, with the current issue of free trade and globalization, inequality has reached an unsatisfyingly high level. With careless governments and corporations who pay and treat workers horribly, as well as large scale companies who have squeezed out the independent worker, necessary change has never been greater. Fair trade, even though some improvements should be considered, is one of best alternatives available today. It allows for you to take this globalized world and make a positive difference. Fair trade also ensures you didn’t benefit from others misfortunes when purchasing a product. A simple switch to fair trade items at your regular coffee joint or grocery store, and a purposeful visit to specifically fair trade stores, permanent change may be on its way. If we all work together and support the fair trade lifestyle, such ideals will hopefully be able to encourage the creation of a lasting solution to bring equality around the globe.

If you would like to learn a little more about fair trade, consider reading one of my earlier blogs for more detailed information, or you can simply watch this very interesting and encouraging video:



Works Cited:
Meyer, Dick. Personal Interview. 29 Apr. 2010.
Free Trade image
Sweatshop image
Fair Trade hands image
Fair Trade face image
Traditions Café image

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Trade Alternatives

International Trade, as we’ve noticed, can bring about inequalities and injustices to many people around the globe. Some of the most major inequities are found through unfair treatment in the workplace and inadequate pay for independent farmers. But, what is there to do to end these inequalities brought about by owners of large corporations and their excessive greed to be the most profitable?

As mentioned before, Fair Trade is a good alternative. Buying Fair Trade not only allows for independent workers to get fair prices for the goods they trade, but it is a way for you, the consumer, to know that what you bought wasn’t made by poorly paid and treated employees. Additionally, purchasing Fair Trade products is almost a way to silently protest and let others know that benefiting from others’ hardships should not be tolerated.

Fair Trade is definitely a movement in the right direction to let fellow citizens and politicians know through consumption that trade and its effects need to become more just for everyone.

Is there way to be more direct in lobbying to end injustice through trade? One organization, Oxfam International, is attempting to do so. Basically, they are a group of 14 organizations and over 3,000 smaller, local organizations looking to “lift people out of poverty and injustice” around the globe. They are doing this through raising awareness to everyone about the problems and then campaigning and talking to those who make decisions about altering current policies and regulations to ensure justice. This organization works with multiple issues, but one of the larger ones with which they deal is trade.

This is an image to display Regional Trade Agreements between developing countries

It can be seen that many rich countries are reaping most of the benefits of international trade, while leaving poor countries behind. Oxfam was able to note the five of the major problems which are responsible for these inequities: Dumping, Market Access, Forced Liberalisation, Labour Rights, and Regional Trade Agreements. These are the issues this organization is trying to remedy through the use of the methods listed above.

Oxfam has worked hard to make a difference, and they have definitely come a long way in instilling fair trade between companies and countries. Here are just a few examples…

One of the major achievements is that they were able to talk with the World Trade Organization (WTO) and make it so that poorer countries didn’t have to reduce their tariffs on imported agricultural goods, which are necessary for survival.

They were also able to get almost 20 million people, including many celebrities, to join the Big Noise petition, part of the “Make Trade Fair” campaign, to let leaders and governments know unfair trade isn’t tolerated. The Big Noise petition was paired with a competition to get people around the globe to submit a campaign idea in support of the Make Trade Fair campaign to spread the word.

Campaigning is shown to work: Oxfam spoke with the head of Starbucks and the leaders of Ethiopia to persuade Starbucks to sign a licensing agreement with Ethiopia to sell its coffee products. This was achieved. But, none of this could have been done without the continual and strong campaigning by nearly 100,000 people around the world. Overall, Oxfam believes that this agreement “could change the coffee industry forever.” This is just a small example, of many to come, which shows that change can be made, and equal treatment and fair prices in trade can be achieved through a lot of hard work.

Through the various successful stories shown by the works of Oxfam, and from the continual sales of the Fair Trade products in department stores around the world, change can be made to help reduce the harmful effects of international trade. You can make a difference by simply buying Fair Trade products and knowing that it came from a trustworthy source, by supporting Oxfam international and becoming active in their initiative and quest for an end to poverty and inequality, and by contacting your local representative or leader and ask that they support the ideals that Oxfam and Fair Trade value when making trade related agreements and decisions.

Although there is still much, much to do in terms of reducing trade inequalities, there are definitely alternatives, which can slowly make the world more equal for everyone by ensuring fair treatment and payment.

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Resource Guide to Further Reading

Below is a list of various resources which provide important and valuable information about inequality in trade.

1. Why Trade?
This source gives a basic overview of trade: how it works and why people participate in it. It explains how a country may trade their goods or services with another country if they specialize in some sort of resource, and they may trade in order to receive necessary means to produce a certain product. And, the main idea for global trading is to ultimately create economic growth and obtain maximum profit. This link also provides some very useful pictures and images to further show how trade works.
2. Agricultural Trade and Inequality
This link is particularly eye opening through word and picture. It expresses how with the globalized word of today and increased international trade, many Least Developed Countries (LDCs), as they note, are suffering drastically in agriculture. The article expresses how many people in these LDCs rely a lot on farming, but they are burdened with declining agricultural prices. They receive a meager compensation for all of their work. It continues to name numerous other issues about their competition in the global market, and it suggests a possible remedy.
3. Wage Inequality in Developing Countries
This article proposes a model and analysis which is able to prove how in many developing countries, wage inequality is prevalent through those who export items which are very skill oriented. Although the bulk of this article is related to the model, the beginning provides some shocking information: especially how international and free trade is responsible for 20% of inequality today in the U.S. alone. The article continues on about how this wage problem extends out of the U.S. and to other countries. It think that this article gives some very valuable information showing how globalization and trade have negative impacts.
4. Gender Inequality in Iran
This article is one I have used in one of my previous blogs, but I think that it has some really good information about globalization and inequality (specifically gender) in a trading world. The article gives a little background information about globalization and international trade as it shows how large corporations compete in a “race to the bottom,” attempting to get the best price for their product when trading – at the expense of worker treatment. The remainder of the article shows how many women in Iran face inequality and little compensation for their work as a result of trying to compete with the prices of large companies.
5. Make Trade Fair: A Report
This link is very interesting. It questions why trade, which is supposedly a method for wealth and prosperity, is leaving so many people behind. Not only does it express that there is severe inequality in international trade (especially because of tariffs and subsidies and low prices of goods), but it opts for a solution and a call for action. Although this is just the introduction of a report, it makes the reader, as well as myself, think about what can and should be done to improve the lives of others around us. Also, there are links to the further chapters of the report explaining in more detail about globalization today, poor countries and trade, international trade regulations, and a solution.
6. Why oppose WTO?
This link is part of a Fair Trade organization’s website expressing the negative aspects that the World Trade Organization has on the lives of many workers and people living in developing countries. Many of the arguments made in this article express that the WTO has increased foreign investment, escalating the search for the cheapest labor to new heights. From this site, it also expresses how they increase hunger, harm the environment, and ignore human rights. This is a particularly interesting link because from reading and researching various articles, essays, blogs, and writings, many express how international trade promotes inequality and that the WTO is partially responsible. Thus, I think that this is important information expressing the specifics and what it is that they do in relation to international trade that instills inequality.
7. Trade Tariffs in Poor Countries
Because of reading many articles stating that with international trade came many tariffs barriers for poorer countries, I think that this article does a good job of explaining how these tariffs have impacted developing countries, making it harder and harder for people from these countries to better themselves, compete in the global market, and not be destined for poverty and poor working conditions. The article gives some staggering numbers, such as, when poorer countries trade with other more developed countries, they have to pay four times more than richer countries.
8. A Need for New Rules in International Trade
This article not only expresses how globalization and international trade have influenced inequality in poor nations throughout the globe through unfair treatment of workers, but it expresses how trade affects people in the U.S. – our own country. The author questions the validity of globalization and the WTO, wondering why no benefit has occurred. I think that the best aspect of this article is that it poses a lot of rhetorical questions, making the reader think and truly try to make sense of why so much inequality is going on, and it makes the reader try to think of some sort of solution.
9. Sweatshops and Globalization
I found this article to be particularly enlightening and a definite read. It expresses how globalization and international trade’s “race to the bottom,” has created inequality and poor working conditions for the laborers in sweatshops. It also provides the reader with small anecdotes about the horrible conditions that many of the men and women face in sweatshops. Later in the article it sheds light on a possible alternative view on the economic benefits of working for a sweatshop versus having no job at all. Along with all of this, the author gives a few more links for further reading and information, which is really helpful.
10. Sweatshop Fact Sheet
This article gives a little bit of background about “sweatshops.” It explains the conditions that the workers face, the wages they earn, and how international trade and globalization has influenced such unequal treatment of workers. The article also notes how you, as the consumer, can be notified of whether or not a garment, food, or other item has been made by laborers in a sweatshop. In whole, this link simply explains the basic idea of a sweatshop and its relationship to international trade today.
11. Gender Inequality and Trade
This article is a very good article explaining how gender inequality ties into trade. I seem to like this source because it is able to simply state how women aren’t always treated the same as men in their work and they seem to face more health issues. This article also addresses what could be done so that this inequality between gender ceases, especially through the implementation of different programs and groups. Lastly, it also talks about what the WTO can do better to ensure equality among people. One of the best parts of this source is that not only does it identify the problem, but it attempts to discuss a way to a solution, which is very valuable.
12. Paul Krugman: Trade and Inequality
This blog on trade and inequality gives a more scientific and theoretical approach on the topic. I think that it is really valuable to look at a situation in multiple lenses to ultimately see what the best solution to this inequality problem can be. In whole, this excerpt addresses the trade between the U.S. and China and wage inequality for the U.S. And one of the main conclusions it draws is that this problem has escalated (more than expected) over the last few years. I also think that this link is particularly important because in most cases, people connect inequality and trade with developing countries; however, it can affect our own country as well.
13. Stolper-Samuelson Theory
In the link above, the blog mentions the Stolper-Samuelson paper and theory. And I have included an additional link here to an explanation to that theory. I think it is important to understand it in Layman’s terms in order to fully comprehend the meaning and reasoning behind the conclusion in the above blog. So, this link is a blog explaining the Stolper-Samuelson Theorem: “one of the two factors (of production of goods) must end up worse off as a result of opening up to international trade.” This blog then begins to question whether or not this theory cam be responsible for the low wages and inequality that many workers face.
14. What is Fair Trade?
This is one of many different websites about Fair Trade. One of the particularly neat aspects about this site is that it provides the reader with information about Fair Trade and what it does. It also gives information about how to support it, what products they sell, the producers, and resources to help the reader know as many of the benefits of Fair Trade as possible.
15. About Oxfam International
Aside from Fair Trade, there is another company, or group, entitled Oxfam International that attempts to make trade more equal. They believe that today, all the rules and regulations in international trade are focused mostly on the rich countries and fail to pay attention and care about the well-being of poor countries and their workers. This link provides the reader with information about why they want to make changes to trade today, and they provide a link to their Trade Campaign which attempts to make changes across the globe. Additionally, this website also explains what Oxfam does beside with work with trade: Agriculture, Climate Change, Health, and the list goes on…
16. Benefits of International Trade
This is a very brief article about international, unhindered trade and its benefits. I think that it is important to keep in mind the opposing view and maybe why international trade does have some benefits and doesn’t just cause inequality. In its brevity, it is still able to express some of the key benefits, from an economic perspective: it approves of globalization and that international trade allows for a company to receive greater profit through global interactions; it increases competitiveness; and it also explains about the comparative advantage (lowering the “opportunity cost” of a specific good compared to that of another company) and benefits.
17. Globalization and Trade Benefits
This is another link that I used in one of my previous blogs, but yet again, I think that it is a particularly important one. It also expressed the opposing view and the possible benefits of trade. It explains about free, unhindered, international trade and how it doesn’t always instill poverty and inequality. In fact, it explains a little bit about how trade can create jobs, which were otherwise unavailable to many people in developing countries. Additionally, it helps to improve the economic status of many countries, which can slowly aid in getting various countries to become more prosperous.


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Gender Inequality in Trade

During the course of my UH 370 course, we have discussed many topics relevant to inequality as a result of globalization. One of the major recent focuses has been on disposable women and gender inequality. In Disposable Women and Other Myths of Global Capitalism by Melissa W. Wright, she discusses how women working in Chinese and Mexican factories are viewed as “disposable,” having no value besides their bodily function in the work place. In these factories, the women are expected to submit to the male figure. The employers state, “We want our assembly workers to stay for about two years. After that, they want to leave anyway.” This is because of the owner’s distrust and the women’s inability to physically work as effectively as desired for a long period of time.

Then we ask ourselves, so how exactly does gender inequality relate to international trade and why does this inequality continuously occur?

With trade, whether it be between countries, states, or companies, each person is trying to make their economy, lifestyle, or product appear most desirable in order to promote trade with others. In many cases, to get the best deal each country, state, or company may go to drastic measures to do so. They want to make or generate their product for the cheapest amount in order to obtain a larger profit when trading. Gender inequality and poor treatment of women workers is a large contributor to the “race to the bottom”, as Zahra Karimi puts it. This uncaring attitude and treatment of many working women for one’s own gain exactly portrays the little value women have in many factories, as mentioned by Wright.

Some arguments that state various economic reforms during the 1980s helped to decrease gender inequality and created employment for impoverished women are correct in some respect: it allowed women to have jobs and work for themselves. However, the type of work available to them was predominantly in textiles and technology, which comes with little payment, cramped working spaces, long hours, and few rights. Factory work for men, on the other hand, was predominant in car factories, where the pay and treatment was better. These women were being taken advantage of: employers knew that these women would submit to nearly any type of work, as long as it provided some sort of income; thus, fair treatment was not an incredible priority.

The women working for these large scale companies face inequalities while in the workplace. And, as a result of the poor worker treatment in factories that trade induces, historically predominant factories have dwindled, removing work opportunities, and many independent workers have faced inequality.

In Iran, because of the globalized economy, women who create handmade carpets have faced adversity. By treating women unequally in order to increase a company’s profit, as mentioned above, carpets sold in India, China, and Pakistan sell for half the price of those in Iran. Earlier, in a less globalized world, women in Iran made these carpets exclusively through large corporations in factories, but now this profession is less common and done from the household to cut costs and because of the inability to be competitive in the global market. Now, because of harsh competition with other countries, their payment for this work is minimal. It is preferable to sell the carpet independently to get a little bit more money for their year-long project. But, through this process, payment often takes a long time to reach the artisan. To get the money more quickly, most women work for home-based corporations and go through a trader to sell their work of art. But they only receive half the profit. Either way, by working independently or for a company, these Iranian women do not get paid much, and this most likely resides in the fact that they work they complete is historically underappreciated.

We see that gender inequality is expressed in two different ways because of women's work with textiles and technology. The first is the poor treatment of women who work in factories, traditionally associated with harsh treatment, as corporations compete in a “race to the bottom.” The second is a result of this race: many women workers are finding it difficult to make much of a profit when trading their goods to compete with the cheap prices of large corporations.

The source of this problem lies at the head of a company and his never-ending desire to make the most money as possible when trading – without considering the ethical treatment of his female employees and that the work they perform is equally desirable for praise as men's work. This is where corrections need to be made so that gender inequality from trade becomes a thing of the past.

Works Cited

Wright, Melissa W. Disposable Women and Other Myths of Global Capitalism. 1st ed. New York, NY: Taylor & Francis Group, 2006. Print.

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Diminishing Inequality: Fair Trade

With all of the inequalities, unfair payment, and poor working conditions associated trade, there has to be some way to limit this situation. Fair trade is just one small step in the right direction. This organization and “social movement” has made an attempt to eliminate such inequalities to working people around the globe.

The basic idea behind Fair Trade is considered a “trading partnership” which provides the artisans and farmers with a fair price for their work. This ensures that whatever product that the farmer or artisan sells, he or she will be paid a reasonable price. Additionally, Fair Trade cuts out the middleman; thus, a more direct trade between worker and consumer is instituted to help to facilitate a better payment to the farmer and artisan. Fair Trade also guarantees that working conditions are high-quality. All employees are treated well and do not perform their job in harsh conditions, such as sweatshops. Also, it aids in boosting the confidence of the workers and empowers them to work more efficiently because they know that they will be rewarded for their hard work.

This is a photo of a woman named Bertha Fanueli Matowo, a Fair Trade farmer in Tanzania.

Coffee is one of the major products that over 20 Fair Trade groups market to consumers around the globe. Here’s a look at just how it works:

Coffee is considered a common and popular crop, but doesn’t seem to be very profitable. In 2001 there was a very large coffee crisis going on around the globe because of overproduction. Thus, the price that farmers were getting for their coffee bean production was around $.45 per pound. From this disaster, many farmers and their families suffered from starvation, lack of health care, and inability to receive an education. Since this crisis, Fair Trade has helped make sure that coffee farmers in Brazil, Colombia, Mexico, and other countries receive adequate payment for the manufacturing of this product. The minimum payment that farmers are guaranteed to receive is now $1.25.
To view a graph of guaranteed coffee prices, visit fairtrade.net.

This is a photo of Dankan as a child.

To further express the great benefits of Fair Trade on a more personal level, here is one particularly moving story of a man named Dankan, from Kenya. As a young boy he learned artisan skills and carving from his father. As he grew older, he used these skills to obtain his income and support himself. Despite all of the grueling work, he made very little money: 500 Kenyan shillings per month, which is equal to about $6. However, by 2003, he was introduced to the idea of Fair Trade, and his reaction was priceless: “‘Just tell me again, so that I understand. We carve items for you at a fair price that we agree beforehand and you pay us before you take the carvings away?’ ‘Yes.’” Because of being introduced to Fair Trade and being paid a reasonable wage, Dankan greatly benefited financially. Additionally, Fair Trade encouraged him to continue being an independent artisan and kept him away from working for other large corporations where his wage would be significantly lower, and he would be treated unfairly.

Photo courtesy of GlobalNet21.

Fair Trade is truly a wonderful way for trade to still be done, but in a just way where the workers are paid fair wages, are able to work in decent conditions, and are encouraged and willing to work hard to be successful. It also helps in promoting farmers and artisans to treat the environment well with the use of organic materials and practices as well as limited use of pesticides and other toxins.

Fair Trade was introduced in the early 1940s. Since about 1989, it has increasingly grown in popularity as more and more people are becoming familiar with this type of equal trade agreement and the fair treatment of workers this movement assures. Now, Fair Trade products can be found in many popular stores such as Starbucks, Fred Meyer, Costco, Target, and Safeway.

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History of International Trade and Labor

Trade is an integral part of a nation’s success. According to the Heckscher-Olin Theory, the reason “for trade between two countries is that the countries differ with respect to the availability of the factors of production.” In most cases, one country may have more capital and less labor, but another country may have less capital and more labor. These countries can then trade their commodities with each other to increase their profit, income, and financial success.

It is believed that trade of both goods and services has been an ongoing activity between nations and people for nearly 150,000 years – since communication began. The earliest well documented accounts of trade occurred around 3000 BC with precious metals: specifically from the copper-rich nation of Cyprus.

So, we know that trade has been occurring throughout history for thousands of years, but when did globalization begin to boom? And because of this, when did companies, who obtained labor by trade, begin to treat their workers poorly and create a working atmosphere known as the sweatshop?

Looking back to the slave trade will perhaps give some insight on some of the conditions that modern day laborers face and maybe why such conditions exist. Dating back to the mid fifteenth century up until the nineteenth century slaves were traded from Africa to Europe and the Americas to work on plantations because of their previous experience with agriculture, being used to warmer climates, and ability to work for almost no payment. However, the conditions and treatment they faced were far from justified: they were brutally punished for wrongdoings, they were malnourished and frequently obtained diseases, and they were not compensated for the work they completed.

Sweatshops, which are also considered to be the modern form of slavery because of the similarities to the treatment of African American slaves, were first introduced in the late 1840s in Europe and New England. They were known more commonly as "homework,” where laborers were paid as little as 10 cents a day for nearly 18 hours of work in a home-based setting. In the late 19th century, this type of work seemed to escalate into factories and created what is now known as the sweatshop. In the 1880s sweatshops became more prominent in Ecuador and then into European nations in the textile mills. Companies hired immigrant women and children for such jobs, and the conditions they faced were awful. The jobs performed took many hours and were incredibly arduous, their payment was dismally small, and facilities were dirty and unhealthy. One may be questioning why someone would agree to such conditions, but it is because these immigrants were looking for any work they could find – as long as it paid. And the companies were willing to take advantage of the immigrants’ vulnerability and lack of knowledge regarding this type of labor. Additionally, the governments of the countries from which these workers came were not incredibly willing to stop such treatment because of the economic growth that this type of work brought the country. However, by the 1930s, because of the New Deal, joint liability, and the newly created 40-hour workweek, sweatshops slowly became less common, but not entirely eliminated.

Since the mid 1900s, globalization has increased drastically from the early 20th century as countries continually become more and more interconnected through trade and technology. Consequently, these sweatshops have become more common – most notably in Central and South America and Asia – among North American companies such as Wal-Mart, Nike, and The Gap. These companies are looking to make the largest profit possible, and hiring cheap labor from foreign countries is one way to do so. For many United States companies, several acts, initiatives, and other groups have been instilled that promote such international trade of labor. The General Agreement on Tariffs and Trade, the US Agency for International Development, and the Salvadoran Foundation for Economic and Social Development are just a few examples.

The globalization of the world and being able to trade goods and services between nations seems economically beneficial, but how far is too far? Unfair treatment of workers should not be a tolerated action when trading services among nations. What can be done to eradicate this behavior?

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Fair or Free Trade?

In today’s globalized world, the trade of goods and services is now incredibly prevalent between nations. It is becoming even more common for larger companies and corporations to seek both cheaper resources and cheaper labor in foreign and developing countries. Many companies seek international trade in order to be more successful without spending and using as much money to further their company in the production of a certain product. Trade of goods and services can have positive and negative aspects, both of which I would like to analyze and observe.

International trade is sometimes viewed as being incredibly unequal. Major corporations go to poor countries to get cheap labor. In many cases, the people working for these major companies in “sweatshops” are paid very little for the number of hours of hard labor they put into their jobs. In some cases, the treatment of workers is far less than ideal. Because of these low wages and not having to pay the workers much money, the companies are able to turn a very large profit off of their product. Such conditions are unfortunate, but some small help is being introduced to remedy this situation by the implementation of Fair Trade. Fair Trade attempts to eliminate poverty and allows farmers and laborers to receive a larger profit from the goods they produce as well as providing them with knowledge to increase their success in life.

However, utilizing international goods and services, or the concept of free trade, isn’t always such a negative concept. When large companies go to different countries to find labor for their product, there are several benefits to consider. In many cases, when companies choose to go to developing countries for labor, they are creating work. In the poorer countries, many people may be unemployed and looking for some type of job, and working for these corporations is a way for a person to make money to support his or her family. Additionally, economic success can also occur from the presence of these companies and help developing countries slowly become more prosperous.

This blog is for a class concentrated on the ideas of Globalization and Inequality. I think that the trade of services and goods is directly correlated to the overarching theme of the course. As the world is more globalized, the economy and trade are becoming increasingly international. In some cases, globalization may bring about both inequality and great benefit.

I chose to assess the topic of trade and not only the negative aspects of it, but also the positive in it as well. I think it is incredibly important to consider both sides of an argument to become more accepting and understanding of how others may perceive a certain issue. I hope that through more research about this topic I can become more enlightened, and hopefully inform others, about the concept of international trade and not only its faults, but also the benefit it brings.