Lesson 6: Exploring Alternatives 

Please read "Unions," "Frioedrich List," "Progressive Utilization" and "Fair Trade"

1. How does the protection a union gives its members affect the general rate of wages?   (Unions) 

2. What goal did the “Wobblies” and the “Single Taxers” share?   (Unions) 

3. According to Friedrich List, what state of international relations is needed before free trade can provide a universal benefit?   (Friedrich List) 

4. In List’s view, when is a protectionist policy required? What is its effect?   (Friedrich List) 

5. What is List’s estimation of the average citizen’s level of concern for the good of his or her nation?   (Friedrich List) 

6. In Friedrich List's view, a successful free trade policy

a. requires an international regulatory system.
b. benefits agrarian nations at the expense of industrial ones.
c. would require most people to consider the welfare of their nation first.
d. tends to decrease local cooperation.

7. Why does PROUT theory emphasize economic decentralization and cooperative production?   (Progressive Utilization) 

8. According to PROUT, “commodities pertaining to the basic necessities which are not locally produced” should be removed from local markets. What effect would that have on the production and distribution of wealth in that community?   (Progressive Utilization) 

9. Why does PROUT recommend that manufacturing should take place as close as possible to the source of raw materials?

10. According to PROUT, it is advisable for a community to begin importing products

a. once local production has become capable of satisfying basic needs.
b. as soon as possible.
c. only if there is enough export capacity to avoid a trade deficit.
d. None of the above; it is never advisable.

11. Suppose a PROUTist community imported treadle pumps, and greatly increased its yields of a particular crop that grew well in the area.
a) Under PROUT theory, how should the increased capacity be utilized?

b) Under conventional free trade theory, how would the increased capacity be used most

c) What would you advise them to do?

12. What are some of the competitive disadvantages faced by producers in developing countries?   (Fair Trade) 

13. Why is it unlikely that the fair trade movement will have much impact on wages and living standards?   (Fair Trade)  14. To consumers, "Fair trade certification" provides

a. a substitute for lacking governmental regulation.
b. a guarantee of ecologically safe production.
c. an increase in the quality of the goods they buy.
d. a painless , yet effective, way to help reduce poverty.