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Fair Trade: Harmful or Good for Producers and Workers in Developing Countries

2021-04-06 来源: 51Due教员组 类别: Essay范文

51Due教员组今天给各位留学生带来一篇纯原创商科代写范文,讲的是公平贸易:对发展中国家的生产者和工人有害还是有益,希望这篇可以帮助到各位留学生,同时需要代写也可以直接联系我们51Due客服vx(vx:Jenny_dynh)进行咨询。

 

 Fair Trade: Harmful or Good for Producers and Workers in Developing Countries

Fair trade is a social movement started in the second half of the 20th century. It experienced the continuous expansion of product categories after more than 50 years of efforts by participants and the continuous increase of moral awareness. Although fair trade gained remarkable achievements, its practice in reality is met with various controversies. In the essay, it is argued that fair trade still impacts producers and workers in developing countries negatively to some degree.

The extent of beneficiaries of fair trade is constrained by the ignorance of market rules and lack of demands. In reality, there are indeed some support to the fair trade when developed countries subsidize agricultural products. They are artificially selling agricultural products at a low price to compete against developing countries. Based on this, there are supports to fair trade as it sells the agricultural products at a relatively higher price, but it also runs counter to the most basic commercial rules - the price should be signal of changes in supply and demand. The fair trade product price is in general higher than the normal free trade product price. This is a sort of negative factors to its sale. The limited actual Fair Trade sales decreased the financial benefits of Fair Trade for farmers(Dammert,  & Mohan, 2014, p.858). Thus, if agricultural subsidies are leading to a distorted market price, the fair trade is intended to change the existing distortions by another distortion of the market price, and the two distortions are neutralized. Second, even if consumers purchase this kind of product as they are willing to help the poor or out of charity, it is still not a normal product of market price,which is also distorted. In the long run, it is harmful to both the workers and the producers in developing countries.

However, the purpose and spirit of fair trade is positive, but there may be some discrepancies between its purpose and its result. The idea is opposed by some people as compared with the traditional trade system, fair trade is undoubtedly an alternative trade manner, as it is business model to intended to increase benefits for workers of plantations (Krumbiegel, Maertens, & Wollni, 2016, p.195). As most coffee is produced on large plantations, and many landless workers work for the plantation, whose situation is awful than that of small producers on the land. Also, fair trade closely link with cooperatives. But sometimes farmers simply do not know how fair trade works or how cooperatives make allocations of earnings of fair trade. In addition, agricultural products exported by developing countries have for a long time been subject to no change (unlike manufactured goods such as automobiles) and their added value is thus not high, making it hard for producers to increase the prices of products and gain new value. Thus, it is argued that southern economies must develop higher value economic exports(Smith, & Alastair, 2013). Similarly, fair trade buyers must also follow certain rules before they can conduct fair trade activities. For example, to become a fair trade coffee supplier through certification by FLO, producers must meet a series of criteria. And if one wants to use Fair trade labels, the coffee importer must meet the following criteria: it must be purchased directly from the grower organization through the purchase agreement and the agreement will take more than one harvest cycle; the importer must pay the lowest price and a premium.

The current cost of certified suppliers and producers restrict the possibility of benefiting more people in fair trade. Some opposed the argument by saying that as a result of their participation in fair trade, small and medium-sized producers in the South have been given the platform for capacity-building that is different from any previous means of assistance. For example, many producer cooperatives in the southern countries can get development funds obtained from fair trade, educate the workers, rebuild community infrastructures and expand market capacity(Krumbiegel, Maertens, & Wollni, 2016, p.195). Also, small producers and labor-workers, the intended beneficiaries of fair trade, is supposed to comply with the relevant provisions of the Fair Trade Organization to be certified as suppliers and producers of fair-trade products. Currently, Fair trade potentially creates an awkward situation for those growers hoping to join fair trade. The rents from the higher prices to consumers are almost equal to the costs of certification(Dragusanu, Giovannucci, & Nunn, 2014, p.226). Even if they are eligible for fair trade certification, farmers will not benefit moreThis is not consistence with the core principles and development course of the fair trade movement.

The Fair Trade, the political instrument for North-South dialogue from the very beginning and the coordinator for protecting the interests of vulnerable groups in international trade, faces many challenges and controversies now. There are still questions so to what extent fair trade can substantively change the lives of farmers, given the questions about the potential contribution of fair trade to development under the current system of violating market rules, restrictions, and the number and types of beneficiaries.

 

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