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Fair Trade is a trading arrangement intended to provide more equitable international trade by creating better conditions for disadvantaged and/or marginalized producers of goods. These practices include, for example, paying fair wages, supporting participatory workplaces, supporting environmentally sustainable production, and developing long-term and sympathetic buyer-producer relationships (typically between a buyer in a developed nation who is purchasing products from a producer in a developing country).
Fair Trade results in a smaller margin of profit for (and sometimes the complete elimination of) the middleperson, whereas the producer or grower of the product receives a larger portion of the product's ultimate price. The increased income producers and growers earn is intended to enable them to move from economic vulnerability to greater self-sufficiency and from powerlessness in relation to ...
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