Ethnical: Fair trade

Question 1

Describe the term Fair trade

Answer 1

Fair trade is a system that ensures working standards of workers are meet.
Workers right, safer work and proper pay
Suppliers are paid fairly and not exploted

Question 2

Fair trade products

Answer 2

• bananas
  -coffee
• juice

Question 3

Describe the term Fair trade premium

Answer 3

Fair trade premium is when workers gain extra money from the products and labour time.
They invest this money in personal needs

Question 4

Identify the number of farmers and workers in Fair trade certified producer organisations and the number of producers that are Fairtrade certified

Answer 4

1.9 million of farmers and workers are Fair trade certified by organizations.

Question 5

Outline the activity undertaken by a Fair trade farm in South America

Answer 5

• Prices are in the average or higher costs
• The Fair trade Premium – an extra sum of money paid on top of the selling price to invest in business or community projects of their choice
• Decent working conditions, no discrimination, no forced labour and no child labour
• The company pays the farmer in advance. credit ahead of harvest time.
• Being able to plan more for the future with more security and stronger relationships with buyers

Question 6

Advantages and disadvantages for the business using Fair trade

Answer 6

Advantages:
- Recognition, brand loyalty: Consumers know and trust Fair trade

• Sustainable and transparent
• Stable business relationships with suppliers: long-term trading partnerships, increase quality.
• Ethical choice: tackle exploitative labour and the unsustainable exploitation of natural resources.

Disadvantages:
- Fair trade could lead to divisions within an area if some people are left out of the cooperative.

• Longer process and expensive fees: to become a certified fair trade grower or cooperative, you have to pay expenses fees.
• Higher prices and smaller customer size: Not everyone will be willing or able to pay a premium.
• Limited product choice

Question 7

Explain how using Fair Trade raw materials could help a business achieve their ethical objectives

Answer 7

By using fair trade partnerships, businesses can obtain:
- transparency
- respect
- equity in international trade
- sustainable development
- ensuring workers’ rights are protected
- No child labour
- Fair trade doesn`t pollute the environment