Fairtrade

Question 1

Define the term Fairtrade.

Answer 1

A type of trade where producers in a poor country get a fair living wage for their product and which promotes environmental protection.

Question 2

What does Fairtrade promote? Give an example.

Answer 2

Environmental protection, such as banana trade from the Windward Islands.

Question 3

What does Fairtrade bring to LEDCs?

Answer 3

Many advantages.

Question 4

Explain the advantage of Fairtrade to LEDCs that producers there receive a fair price for their product.

Answer 4

Producers receive a fair price for their product, because middlemen are cut out and do not get most of the profit.
Producers can therefore earn more income and invest in education or healthcare.

Question 5

Explain the advantage of Fairtrade to LEDCs that farmers receive a stable price.

Answer 5

Farmers receive a stable price which is often above the open market price, which allows them to plan for the future.
Fairtrade came to the Windward Islands and now 90% of exported bananas are Fairtrade.
This means farmers have been able to reinvest.
Profits have also allowed the purchasing of equipment for 3 nurseries, including toys and books.