Literature Review. What Is Fair Trade?. In Recent Years,

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Literature Review
What is Fair Trade? In recent years, there has been a drastic and noticeable change in the perceived need to support laborers in developing areas. The most popular and supported method of doing this is through a system known as “fair trade”. The system, simply put, is one created to transfer more profits, and thus a better living, to the workers who make them. This is done through a markup, or premium, in the price of the product (Rios, Finklestein, & Landa, 2014). A large portion of this premium goes to (or at least should) the person who made the good, while another large chunk of it goes towards certification of the fair-trade status of the goods. This leads us to the second part, and arguable detriment, of the
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The advent of the internet allowed for consumers to become aware of problems beyond their everyday lives, leading to an increase in the empathy and social awareness of the average person. Rather than simply buying the brands that they know and identify with, consumers now felt a need to support disadvantaged laborers, and fair trade goods were the clearest way.
Perception of Fair Trade Fair trade is viewed positively by the general public; the intentions mostly come across as altruistic, with the profits from premium prices being used to help laborers. Some are of differing minds on this subject, however. There are those who whole heartedly believe in the cause of fair-trade, believing that hard working artisans deserve a living for their work. They see their position as citizens within developing countries as unfair hindrances, and are willing to pay extra to help relieve some of that burden. There are others, however, who see things differently; they believe that if you cannot succeed in the market based on your own merits, then you do not deserve to succeed, and should find different work. This should, theoretically, lead to a stronger, healthier market that is working at equilibrium. This “survival of the fittest” mentality comes from a mindset that the world is just, and that people generally get what they deserve. This “just world” mind set is
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