Question

1. What is the difference between Fair Trade and ‘free trade’? What problems of globalisation does fair trade seek to overcome?

2. What is importance of fair trade labelling and how is it conducted?

Refer to the Hira and Ferrie reading to answer the following:

3. What are the competing conceptions of fair trade? What implications do these differing views have for the implementation of fair trade?

4. How would Fair Trade be considered from the point of view of a Critical Theorist? How would this differ from that of a Discourse Ethicist?

Answer 1

1.

Fair trade refers to the international trade that works on fair economic terms and makes positive social and environment impact in the market where it is being done, whereas free trade means international trade that is free from any duties, taxes and barrier. So, fair trade ensures terms of the trade are beneficial to all the parties, but such commitment is not made under the free trade.

The first problem is the economic exploitation, that is overcome by the fair trade. Fair trade helps countries where the trade takes place to get right price and consumers are properly traded. It is the problem of globalization, often cited by the poor nations and it is resolved by the fair trade. The second problem to be resolved is related to environmental conservation and social aspects of the trade. Fair trade does not promote any policy that harms the environment or hurts social dimension of the communities in the market. Though, these are the overlooked issues, when only globalization is concerned.

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2.

Fair trade labelling is important because it shows that the company or products having this label, has done positive economic impact, other than ensuring positive social and environmental impact. this types of Labeling means that workers are paid right wages, given right working conditions, there is a giving back to the communities and environment and ecosystem is preserved. So, it adds value and consumers trust brands that come with this type of Labelling.

It is conducted and achieved after through evaluation of company practices, impact and strategies on the ground by the Fair trade international as certification body or any other authorized organizations. Once, all the principles and guidelines set by the certification body is met, then fair trade Labelling is awarded.

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