Unit 4 - Fair Trade - Social Entrepreneurship

Question 1

Why was Fair Trade established?

Answer 1

• farmer in e.g cocoa industry sometimes get unreasonably low paid

Question 2

Where does the money go to after buying Fair Trade?

Answer 2

• the money goes to the farmers

Question 3

Are Fair Trade goods usually more expensive?

Answer 3

. consumers are levied with higher prices

- Fair Trade goods are usually more expensive

Question 4

What are the benefits of Fair Trade?

Answer 4

• stable prices that cover the costs of sustainable production
• market access that enables buyers to trade with producers who would otherwise be excluded from market
• partnership (producers are involved in decisions that affect their future)
• empowerment of farmers and workers (assistance for producer organisations to understand more about market conditions and trends and to develop knowledge, skills and resources to exert more control and influence over their lives)

Question 5

What are the farmers responsibilities when working with Fair Trade?

Answer 5

• no child labour
• transparency
• no forced labour
• commitment to non discrimination, gender equality and freedom of association
• respect for the environment

Question 6

What is Fair Trade?

Answer 6

• trade between companies in developed countries and producers in developing countries in which fair prices are paid to the producers