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The Importance Of Fair Trade

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Fair trade is a concept used to define a financial relationship between a producer and seller. A fair trade agreement is a legal agreement, first made in 1973, between a seller and a producer affirming that a product with a specific trademark or brand name which belongs to the producer may not be sold for less than a stated price (Blowfield & Dolan, 2010).

Fair trade mainly focuses on products or supplies exported from developing countries, and therefore aid in raising the standards of living for poor farmers and their families. Products include cocoa, coffee, sugar, cotton, and many other commodities that are based on manual labor. Fair trade benefits both consumers and organizations. In regard to consumers, fair trade offers consumers high quality and hygienic products …show more content…

Consumers are offered high quality commodities at an exceptional price with minimum premium. Fair trade allows consumers to be a part of a global movement aiming towards enhancing the lives of poor farmers worldwide (Karjalainen & Moxham, 2013). Fair trade also allows consumers to buy such products or commodities at an acceptable price, with no chances of the price increasing due to existing agreements between suppliers and buyers (organizations). Moreover, fair trade is also extremely beneficial for organization due to a number of reasons. First, fair trade allows organization to gain income from the premium of fair trade set on the product or commodity in addition to the price of the commodity itself. This causes an increase in an organizations income, allowing it to seize more opportunities such as development, expansions, or investments. Fair trade also enhances the stance of an organization as it allows it to stand out between its

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