fair trade
fair tradeArguments for the use of protection to help domestic producers compete with imports whose suppliers have some cost advantage claimed to be unfair. There is no straightforward method by which aspects of comparative advantage, such as cheaper labour or cheaper power in one country than another, can be distinguished from ‘unfair’ cost advantages, such as export subsidies. International differences in labour protection laws or in the regulation of environmental externalities are sometimes cited as unfair advantages, which call for market intervention on ‘fair trade’ lines. ‘Fair trade’ is basically an emotive term for protection.
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