What is a fair trade?

A fair trade is a form of goods and services aimed at sustainable, productive for people at all levels of the supply chain and beneficial for workers, communities and the environment. Supporters believe that traditional trading systems are often unfair to lower -level manufacturers, such as people who grow crops such as coffee. Opponents suggest that the pressure on this type of shop creates artificially high prices and prevents the free market. Farmers and craftsmen in the developing world were historically exposed to exploitation, received a fraction of the value of the goods they sell, and sometimes fought with environmental and economic problems as a result of business procedures that focus on making profits in the developed world. For example, the company would move to South America to grow bananas and pay their employees of the fruit rates that would be sold at high prices in the European markets.

several functions characterize the goods of fair trade. The safety and social care of workers is a primary problem where manufacturers promise fair wages for workers, safe working conditions and the absence of children's work. The goods must also usually damage the environment, be produced in an environmentally friendly and sustainable way and must contribute to local communities. For example, a women's team in India could produce wallets from old sari, making women benefit, support recycling and bring revenue to its community.

Consumer education is also an important element, because consumers usually do not seek these goods unless they get motivated. Many companies place great emphasis on humanizing their workforce and represent consumers to people who actually produce goods and show consumers how their purchase brings benefits. The advantages are to carry higher price of goods.

there are dVA types of fair trade: Integrated supply chain and product certification. In the case of an integrated supply chain, each producer supports a fair trade along the supplier chain and supports beneficial practices at every stage of the way from the production of good to the final sale. In the case of product certification, the company signs an agreement with the producer and receives the product certification from a third party in exchange. Certification of fair trade includes a partnership among people who want to sell something but lack the access of the supplier chain to this and people who want to sell goods that are desired.

Success and demand for fairly produced goods illustrates many ways that the free market can work. Although the purchase of such products tends to cost more, some consumers feel that hidden prices of traded goods are too high and actively seek products made and sold with fair trade philosophy.