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(Solved): Economic theory tells us that free trade is good for consumers and good for the economic welfare of ...



Economic theory tells us that free trade is good for consumers and good for the economic welfare of the country, but in recent years there has been a growing movement that favors fair trade, even if it hinders free trade.

After watching the two videos presenting both sides of the free trade/fair trade issue and the case of trade in bananas, answer the questions below.

Are you more in favor of free trade or fair trade? Why?

If you are in favor of fair trade, are you willing to pay $1.00 more for a bunch of fair trade bananas and more for most other goods we import as well?

If you are in favor of free trade, are you willing to take the risk that the items you buy might have been supplied by firms hiring low-paid workers or polluting the environment?



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The foundation of economic theory is the idea that consumers and investors are very efficient machines or that people make the best decisions for themselves. Less barriers, regulations, and tariffs on products and services moving across borders and c
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