Mon Dec 03 2007

Mike Munger, frequent guest and longtime Econlib contributor, speaks with host Russ Roberts about fair trade coffee and free trade agreements. Does the premium for fair trade coffee end up in the hands of the grower? What economic forces might stop that from happening? They discuss the business strategy of using higher wages as a marketing strategy to attract concerned consumers. Is it worthwhile to negotiate bilateral and multilateral agreements? What is the cost of including environmental and various labor market regulations in these agreements?