Topic > The importance of globalization in international trade

Many people fear that globalization has contributed to the spread of sweatshop manufacturing in developing countries as they compete to create new export sectors and attract investment from independent multinational companies (see Rodrik 1996;Klein 2000). Globalization's staunchest critics argue that it is part of a general "race to the bottom" in social and environmental standards in developing countries. These types of concerns have contributed to what appears to be a significant and growing political backlash against globalization in many countries. Western nations, mobilizing local activist groups and transnational NGOs, and stirring voter unease about future trade agreements. The fair trade movement is probably best described as a form of social entrepreneurship aimed at creating business relationships that bring about specific improvements in labor and environmental standards. health and education, to groups of citizens in developing countries. Fair trade organizations establish networks that connect marginalized producers and workers in developing countries with importers, retailers and consumers in developed economies” certification and labeling of products made by cooperatives and companies that meet certain standards (in terms of prices paid to farmers, wages paid to workers, working conditions, environmental sustainability, and so on). This process allows interested consumers in developing countries to identify and reward these producers by paying higher prices for their goods (compared to non-certified products), compensating them for the costs associated with improving standards and investing in