• Entry
  • Reader's guide
  • Entries A-Z
  • Subject index

Fair Trade

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 ...

Loading
  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles