The Fair Play Debate Summary

Graduate Business Ethics-Section 01
March 5, 2013

Is a Fair Trade Policy Superior to a Free Trade Policy?
In the past 30 years the business world has changed tremendously because of globalization. It has allowed a trading relationship grow between the developed and developing countries. The United States has greatly profited from this relationship; American business have been able to cut their labor costs by moving majority of the low skilled jobs to countries such as China, India, and Mexico. In The Fair Play Debate, Joseph Stiglitz fights for fair trade. He believes fair trade policies are needed to protect the poor from the rich. On the other hand, Gary Hufbauer argues for free trade; stating that it is a superior policy because it can benefit everyone in the developed and developing
I agree with Joseph Stiglitz in this matter, because I believe fair trade is the best policy for the business world today. When people speak of globalization they only speak of the “positives.” They say free trade has increased the American household income by lowering costs of products and this was possible because labor costs were cut. Joseph Stiglitz speaks of the other side of globalization. He states Americans who used to work these low skilled jobs have lost their jobs and are having a difficult time finding employment. Not only that, but the workers in these countries are also suffering because the work environment isn’t safe and they are underpaid. The unemployment rate in the United States has been increasing over the past 30 years. Factories have been closing and businesses have permanently shut down all over the U.S. Many Americans have packed up their belongings and moved to other areas to find work. In the article Can the Midwest Regain its Economic Clout, by Richard Longworth, it