Fair+Trade

__FAIR TRADE__

__What is Fair Trade?__ - Fair trade is a way of trading that promotes equality, fairness, and respect to all traders. It is an organized social movement and market based approach that aims to help producers in developing countries to obtain better trading conditions and promote sustainability. The movement is focused on exports from developing countries to developed countries. Some exports include; handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fruit, chocolate, flowers, jewelry, art, and musical instruments.

__Initiatives/Positives for Fair Trade:__
 * It provides farmers with a higher share of the final selling price.
 * It enters into long term partnerships with farmers, helping them deal with price changes.
 * Fair Trade seeks to perform trading procedures and practices for the poor and disadvantaged.

__Arguments/Criticisms of Fair Trade__: __Economic Dilemmas with Fair Trade__: Go to The Debate Go to debate in real life
 * It only benefits a small percentage of farmers who benefit from higher prices. All other farmers will be worse off.
 * The majority of farmers who benefit are in Mexico, a country that isn't fully developed.
 * Only small parts of poor African countries are included.
 * Fair Trade can distort market signals. (Ex. Industries that oversupply. The coffee industry is oversupplied and that causes farmers to be in an oversupplied industry.)
 * Prices would increase so high that no one could afford it. We would have to pay more for labor and even more for the product itself.​​​
 * If a company tries to sell a product with a high price that no one can afford, there's a chance that the company will make a small profit out of the people who actually bought.
 * Sometimes companies would have to fire some of their employees because they couldn't make their labor payment. The employees who are cut end up with a low salary/income and are jobless.