Fair Trade - Definition, Advantages & Disadvantages

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  • Created by: joshlad
  • Created on: 12-05-15 19:35

Fair Trade

What is fair trade?

Fair trade means that the producer gets a guaranteed, fair minimum price for his produce. Fair trade also sets minimum standards for the pay and condition of workers.

Advantages of fair trade

  • Provides producers with a fair price
  • Ensures workers get a fair wage
  • Ensures workers get reasonable working conditions
  • There are no arguments over price
  • Workers can secure a better future for themselves and their families
  • It benefits the producers and the manufacturers
  • It creates jobs for local people
  • It could increase sales because customer like to feel they are helping those less fortunate than themselves.

Disadvantages of fair trade

  • The product is usually a higher price than a non fair trade product - the customer pays more
  • The product may be a lower quality
  • The non fair trade workers get paid less and have worst conditions
  • The profits the producer makes may not be reinvested in the workers or local community
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