Question

A common economic argument in support of free trade states that all nations will prosper more from the exchange of goods when they are able to do so freely, without restrictions.

What might be a rebuttal to this argument from someone who is an advocate of fair trade?

Answer 1

An advocate of fair trade may say that in some cases nations prosper in unequal amounts than others through these dealings.

When a rich country like America can leverage its money on a small country like Guatemala, they can sometimes threaten to move business elsewhere if Guatemala isn't lowering it's prices. This would significantly hurt Guatemala, so they are forced to comply.