Fair Trade vs Free Trade Flashcards
What is Fair Trade?
It is a social movement to try and achieve better trading conditions and promote sustainability.
What does Fair Trade involve?
It sets standards socially, economically and environmentally.
They guarantee the Fair Trade Minimum Price and Fair Trade Premium - which is invested into local businesses or community projects.
All ingredients of a Fair Trade product must be Fair Trade to receive the Fair Trade Mark.
What are the benefits of Free Trade?
Free Trade encourages interdependence and trade between countries which stimulates economic growth and results in greater economic stability at a global scale.
What are the benefits of Fair Trade?
Guarantees a minimum price for producers.
Invests money into community projects.
Gives more power to producers instead of TNCs.
Reduces the number of ‘middle men’.
Name some Fair Trade products.
Coffee, bananas, chocolate, sugar.
How effective is Fair Trade?
Mixed effectiveness. Although it means producers receive more money per product the supermarkets are the real winners and the overall proportion of money that reaches the producer is actually lower.
Who benefits most from Fair Trade?
The supermarkets.
Who benefits most from Free Trade?
The large TNCs.
