Fair Trade

Question 1

Who

Answer 1

a social movement to try and
achieve better trading conditions and
promote sustainability

Question 2

What

Answer 2

sets social economic and enviornmetal standards set
for both companies and famers that grow commodities
(fames=protection workers rights)
(companies= FAIRTRADE MIN. PRICE- reduced
volatility of price flucations, incentive to produce lots,
FAIRTRADE PREMIUM= invets in business ( clean water,
education, healthcare)
certifies products and agreements by individually
checking supply chain meets all standards

Question 3

Advantages

Answer 3

-empowers small providers who previously had little bargaining power
-support organic production and emergency assistance to farmers
-social conditions in areas with fairtrade cooperatives improved
-small producers competitive in context globalisation
-fairtarde initiatives used to protect vulnerable segments of population
(woman protection)
benefits environment( reduce green house emissions, conserve wildlife
and prevent use of harmful chemicals ( DDT and Paraquat)
-incaresed income for workers
-min wage
-set prices to decrease volatility and mean never lose out

Question 4

Disadvantages

Answer 4

-difficult to make sure that absuive labour practices not
reintroduced after certifications expired or abandoned
-little incentive to keep on investing in improving efficinecy
and living conditions
-higher prices causes smaller cosnumer pool (unaffordable)
-Does not always ensure better prices
-creates divide in communities as not all workers and famers
qualify to be part of certified cooperative
-accreditation is expenisve
-some companies may use this to solev incarese profit