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 …show more content…
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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Sweltering heat, long hours, unfair working conditions are a few descriptive words that Americans use to describe a sweatshop. I believe our judgment is being misguided by the success of our nation, and it is imperative we redefine the word “sweatshop”. Individuals that endure life in third world countries know hardships that Americans could not imagine. If we were to recognize these economical differences it may shine a light on why these workers seek sweatshop jobs. In many of these cases, children must work to aid in the family’s survival. If these jobs are voluntary and both parties agree to working conditions, it results in a mutually beneficial arrangement. One of the worst things we can do as outsiders, to help these impoverished
Fair trade is a market reactive system that wants to abolish global inhumane acts from child labor, poor working environments, low wages, and healthy working conditions. Fair Trade does not control the prices at a local level the producers
Sweltering heat, long hours, and unfair working conditions are a few descriptive words that Americans use to describe a sweatshop. I believe our judgment is being misguided by the success of our nation, and it is imperative we redefine the word “sweatshop”. Individuals that endure life in third world countries know hardships that Americans could not imagine. If we were to recognize these economical differences it may shine a light on why these workers seek sweatshop jobs. In many of these cases, children must work to aid in the family’s survival. If these jobs are voluntary and both parties agree to work conditions, it results in a mutually beneficial arrangement. One of the worst things we can do as outsiders, to help these impoverished
Child labor is a sigsignificant problem in developing. Countries across the globe(Dilascia,tracey m).one of the most oftern -cited examples of child labor abuse occurs in manufacturing industries(Dilacia, tracey m).one of the most frequently proposed solutions to the child labor problem is the imposition of economic(Dilacia tracey m ). Many international organizations as well a number of European counties oppose placing on countries that permit child labor( Dilacia tracey m).ultimately ,the problem of child labor will not truly be solved until the poverty( Dilacia tracey m).It is estimated that a staggering million child across the world are exploited child laborers(zoltan, melania barto ).while the u.s. often speaks against child labor and has federal and state laws punishing those who illegally exploited children in this country(zoltan, melania barton). In order to prevent child labor,the u.s. must impose economic santions on countries that continue to exploit children(zoltan ,melanina barton).For instance ,the worst forms of child labor convention 182, enacted in 1999 , was designed to prohibit the worst forms of child labor.( zoltan.
They often use child labor, lack workers’ benefits, and use intimidation as means of controlling workers (Boal, Mark). Typically, sweatshops are found in developing countries, however, they are also a prevalent problem in many first world countries including the United States. Many manufacturers claim that sweatshops exist in order to keep prices down for consumers, while allowing profit. On the contrary, there is also substantial evidence that goes against these beliefs. For instance, a study showed that while doubling the wage of sweatshop workers would increase consumer price by 1.8%, consumers are willing to pay 15% more with the assurance that the product was made with fair labor (11 Facts About). This, however, is a hard argument seeing as the circumstance was hypothetical and if prices were actually raised, there is no way to assure that consumers would react the same way. Either way, both sides of the argument can agree that the conditions are not good, it is just a matter of analysing the cost vs. the benefit to determine their necessity. This leads to several questions: Are sweatshops a necessary evil, how could they be abolished, and what realistic goals regarding the bettering of worker conditions can be met? Through the answering of these questions, it is easy to see that despite claims of sweatshops bringing opportunities to
Fair-trade is a trading partnership that focuses on sustainable development for poorer producers. they do this by providing better trading conditions and raising awareness of their situation.
In the third world countries such as Vietnam, China, South Korea and Taiwan, we are provided with an example of cheap labour. These corporations could now achieve the benefit of the United States consumer market8, while keeping their costs extremely low in offshore production. The working conditions in the United States were poor for centuries, often little to nothing was done unless a tragedy occurred to influence worker rights by the public. This was the issue during the Industrial Revolution and in the late 20th century. In the United states, improvements have been made and these conditions have disappeared, with the privilege in some agricultural areas. Companies from the United States have moved a considerable amount of their factories
Our sense of Adventure and inability to abstain from new and exotic endeavors has bound us with a flaxen cord. With each new finding probing us to find more, we fulfill our curiosity. We eat more food and grow in knowledge. And this is great for mankind, in fact it lead to our nations foundation. Now, we trade and barter foods grown across the world. This makes it expensive to ship foods as well as difficult to eat food with less GMOs. And for foods that are only able to grow in specific climates it leads to “the exploitation of cheap labor.” (Source F). Meaning that countries without minimum wage requirements work long hours with unsubstantial pay. It damages their economies and communities due to the lack of
According to Lyon, Bezaury, & Mutersbaugh (2010), Fair-trade is a “process which helps improve the well-being and economic stability of disempowered farmers, by using certified commodity-chains to foster development”. For the KHC company, Fair-trade is essential because they want to provide and endorse exceptional coffee beans that they are proud to use; that means, “using coffee that is good and fair for both our coffee drinkers and for farmers are essential” (Kicking Horse Coffee, n.d.). In fact, over the past 20 years, Kicking Horse won numerous awards in many categories, including Canada’s Fastest- Growing Companies, Canada’s Top Women Entrepreneurs, Canada's Favourite Fair-trade Product and number 15 Best Workplace in Canada (Kicking Horse Coffee, n.d.).
One of the bigger issues of capitalism is the class conflict it creates, which is demonstrated through the exploitative practices of the poor working class by the Bourgeoisie. The impact of capitalism is having an effects on a global scale. In a capitalist society, wealth is not distributed equally and in the process of aiding the rich to get richer, in both countries that outsource this work as well as in countries that employ sweatshops, the working class are suffering. In the simplest economic terms, the more we consume, the more demand it creates, which only increase the quotas for sweatshops. Another issue within the formulation of sweatshops is the mass consumption of products by individuals in western and developed countries. The products that are sold on the market are often inexpensive to an individual that is protected by minimum wage and social regulations, which allows for leisure time, usually spent purchasing commodities and products. However, the individuals in these sweatshops are not provided the same protection, and often find themselves unable to afford the products they
These markets became inundated with grain, the prices plummeted, forcing farmers to plow more acres or produce more bushels per acre. This pushed yet more cheap product onto the market, driving prices down further, perpetuating the cycle in what is termed the “treadmill effect” (Roberts 24). This is a key problem of the modern “Walmartization” of food - this low cost, high volume maxim exemplifies the gross “inadequacies of food as an economic phenomenon” through what economists call “differentiation” (Roberts 31, 36). For example, farmers have an indistinguishable product from other producers (e.g. corn), therefore they must be ultra-competitive, down to a fraction of a penny, to sell to manufacturers; envision an upside-down triangle. My mother, an artisan who produces hand-made window treatments (shades, swags, valances), removed herself from the sweatshop industry (due to her superior workmanship) nearly 30 years ago. However, she has not increased prices in 20 years because if she did, her designers would flock back to the sweatshops. She must produce more in order to make a living wage, barely making above sweatshop prices herself. Applied to the food industry, the rush to maximize profit and lower cost leads to a diminished product and strangles competition and alternative voices, as they cannot
Fair Trade’s consumer recognition has tripled in the last five years, proving the company’s sustainability in a global market. As of today, this organization works with more than 800 companies to verify more than 6,000 products as Fair Trade. In 2009, Fair Trade Certified products generated $1.2 billion in retail sales, indicating their large-scale business practices.
2009). This in itself shows the high standards of sustainability can be made from free trade (Gidney, M. 2009). Fair trade provides two key benefits that can help with the current world economic crisis. First it provides sustained benefits for producers that can help maintain their business through fluctuations of the world market (Gidney, M. 2009). Second, fair trade helps to maintain fair prices, additional social premium, and long-term partnerships that help provide better living standards for millions of people in over 60 countries (Gidney, M. 2009).
Globalization can be seen as a major threat for manufacturing jobs in the developed world, however, can also be a benefit for developing world citizens who receive thousands of jobs a year although they don’t receive a high salary. Maurice Allais, a French economist states that this unemployment, of course, has only been able to develop because of the existence of low salaries and insufficient flexibility in the labor market (April 10th, 1999). This indicates that globalization has jeopardized Western countries jobs because companies are moving their establishments to developing countries where they don’t need to pay employees as much and where land is cheaper so overall businesses benefit from this. Also, employees in the developed world are at risk of becoming redundant as they are susceptible to face pay cuts in jobs. Employees are less skilled in the developing world as they don’t receive the benefit of an education like developed countries do. So a company may want to build factories in these countries because environmental laws aren’t as strict. Establishments in these areas provides promising jobs for the local people and allows them to learn new skills, however they are set on minimum wage which in developed world countries, this would not be enough to live on, wherein third world countries this is still a low amount so this is not enough to bring them out of poverty meaning that the only one who benefits from this is the company. Although there have been several arguments against exploitation and oppression, the majority of developing countries do not have existing laws which take minimum wage
The fair trade concept, based on the idea of both economic activity and social development, is replete with ethical and sustainable echoes. Ransom (2002 p 20) asks, 'can the