Philippine Sugar Industry
The Weak Agricultural Sector of the Philippines: Case Study on the Sugar Industry in Negros Occidental
Trade Liberalization: Free Trade vs. Fair Trade
In theory Trade Liberalization is supposed to bring about greater productivity and improve resource allocation which in effect stimulates economic activity and improves long term welfare. Using the policy of free trade there is an elimination of trade barriers such as taxes, tariffs and import quotas. Subsidies, tax breaks and other support to domestic producers are eliminated in order to ensure that there is a free flow of goods, capital, and labor between nations.
The idea behind free trade is that it will lower prices for goods and services by promoting competition. Domestic producers will not longer be able to rely on government subsidies and other forms of assistance, including quotas which essentially force citizens to buy from domestic producers, while foreign companies can make inroads on new markets when barriers to trade are lifted. In addition to reducing prices, free trade is also supposed to encourage innovation, since competition between companies sparks a need to come up with innovative products and solutions to capture market share. But in reality this has made trade even more imbalanced because Third world countries have no protection against competition from foreign products from other countries especially industrialized nations such as the US and European States.
Although these countries supposedly support and promote free trade, their trade policies still incline towards protectionist policies towards their own national goods. Therefore there is a debate whether trade liberalization really increase the chances of nations to develop equally through free trade and opportunity or not because of certain issues of inequality between rich and poor nations. Examples of these are dumping, race to the bottom, labor and environmental issues as well as human rights violations. With this the fair
Trade Liberalization: Free Trade vs. Fair Trade
In theory Trade Liberalization is supposed to bring about greater productivity and improve resource allocation which in effect stimulates economic activity and improves long term welfare. Using the policy of free trade there is an elimination of trade barriers such as taxes, tariffs and import quotas. Subsidies, tax breaks and other support to domestic producers are eliminated in order to ensure that there is a free flow of goods, capital, and labor between nations.
The idea behind free trade is that it will lower prices for goods and services by promoting competition. Domestic producers will not longer be able to rely on government subsidies and other forms of assistance, including quotas which essentially force citizens to buy from domestic producers, while foreign companies can make inroads on new markets when barriers to trade are lifted. In addition to reducing prices, free trade is also supposed to encourage innovation, since competition between companies sparks a need to come up with innovative products and solutions to capture market share. But in reality this has made trade even more imbalanced because Third world countries have no protection against competition from foreign products from other countries especially industrialized nations such as the US and European States.
Although these countries supposedly support and promote free trade, their trade policies still incline towards protectionist policies towards their own national goods. Therefore there is a debate whether trade liberalization really increase the chances of nations to develop equally through free trade and opportunity or not because of certain issues of inequality between rich and poor nations. Examples of these are dumping, race to the bottom, labor and environmental issues as well as human rights violations. With this the fair