Fair Trade's Impact: Analysis of Economic and Social Effects

This report examines the impact of fair trade, focusing on its economic and social effects. It explores how fair trade practices, such as establishing fair prices for producers in developing countries, contribute to economic development, improve living standards, and empower farmers. The report highlights the importance of fair trade in promoting sustainable practices and ethical consumerism, emphasizing the benefits for farmers, the environment, and consumers. It also addresses the role of fair trade in fostering a more equitable society by improving working conditions and promoting the production of safe and healthy products. The report references several sources to support its findings, including studies on fair trade consumption, brand utilities, and consumer behavior.

IMPACT OF FAIR TRADE
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Topic - Impact of fairy trade
Fair trade define as an institutional arrangement. It is planned to help to producer or
farmers in processing countries achieving better trading condition (Balineau 2019). It is process
of exchange the goods and services between organisation in developed nation and manufacturer
in developing nation in which fair prices are pay to the producers.
Main importance of fair trade is that when companies buy the fair trade products it helps
to increase the economy development. They know that currency goes towards the farmers as
enterprise build the business which Is sustainable and improve the health of society (McClure
and Seock, 2018). Organization also contribute to a more equal and just society by selling safety
and healthy products. The main importance of fair trade, is to develop the lives of farmers by
promoting fairer trade conditions. These changes can empower farmers and assist to mitigate
workers to fight poverty, improve living standards and proceeds to more power over their lives.
On the other side, trade producers are more focus on to enhance environment and aware about
safe practices at the global level(Garcia-De los Salmones, M.D.M and Perez 2019). Thus, there
are different importance of fair trade are like exchanging the goods and services that can helps to
change standards of living and working conditions for farmers in developing countries. Also, by
fair trading workers and farmers can save lot of money and can support their families. It also
helps to aware about the unfair trade practices. Therefore, may companies get benefit due to high
demand of sustainable product. Customer want to purchase the quality of product that help to
increase the company profitability due to fair trade practice.
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REFERENCES
Books and journals
Balineau, G. 2019. Engel Curves for Fair Trade Consumption and Development Perspectives for
Producers: Evidence from Data on Real Fairtrade Purchases. The Journal of Development
Studies. 55(5). pp.894-916.
Garcia-De los Salmones, M.D.M. and Perez, A. 2019. The role of brand utilities: application to
buying intention of fair trade products. Journal of Strategic Marketing. 27(2). pp.119135.
McClure, C.S. and Seock, Y.K., 2018. Does Fair Trade matter to consumers? A study of African
cultural products. International Journal of Fashion Design, Technology and Education.
11(2). pp.139-147.
Online
Fair trade importance. 2019. [Online]. Available through : < https://kynder.net/blog/why-is-fair-
trade-so-important>.
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