Abstract This paper examines how fairtradechocolate is supposed to give growers and workers of the cocoa bean a better wage than that paid by the international cartels of chocolate buyers. It also explains how fairtradechocolate could help alleviate the the problem of the millions of hungry and starving poor that exist in the world in spite of the abundance of food. Additionally, the paper presents a history of fairtradechocolate and how it contributes to the concept of sustainability.
From the Paper "It is likely that more people are familiar with the term Fair Trade Coffee, simply because major coffee house chains have begun promoting their organic fair-trade brews. When most people think of chocolate, it is more likely to be a foil-wrapped mass-market candy bar, perhaps a Kit Kat, that is wolfed down to quiet hunger pangs without a thought to the plight of the people who produced the chocolate. As there are no trendy, global chain 'chocolate houses,' there is no monolithic commercial avenue through which to either purvey fair trade chocolate, or make its advantages known."
Abstract This paper explores the overall importance of the coffee industry to the global economy and describes how fairtrade in the industry not only benefits the major players, but the international economy as a whole. It explores the history of coffee prices and how the fairtrade movement which guaranteed a negotiated pre-harvest price changed the living standards for disadvantaged coffee growers and workers. The paper concludes that there is a huge disconnect between prices for coffee in the consumption market and the price paid to the coffee industry workers which results in poverty and poor economic conditions for coffee growers. Three case study analyses are included.
Table of Contents:
Introduction
Structure and History of the Coffee Industry
The FairTrade Movement: Implications for Coffee Workers and the Global Economy
Case Study #1: Starbucks Impact on a Nations Economy: The Duality of Competition
Case Study #2: Cafedirect and KNCU - Partnership in FairTrade Case Study #3: Does FairTrade Affect Quality? - Examining Coffee in Mexico
How has FairTrade Helped Coffee Industry Workers: Tenets and Principles of FairTrade FairTrade Certification Organizations: FairTrade Labeling Organizations and International FairTrade Standards
Conclusion: FairTrade is Ethical Trade
From the Paper "Globalization is a process of enhancing collective measures to integrate economies, not only via goods and services but via governance, investment, trade, and aid (DeAngelis 2004). As globalization has progressed, it is clear that the most advanced countries have gained the most from the integration of economies; as such there is a widening gap between developed/advanced countries and developing/underdeveloped countries. Does globalization favor high-income countries to low-income countries? The coffee industry highlights a common problem with many agricultural products that are marketed within developed regions - impoverished societies characterized poor development trends with a final product that is booming in the industry. Fair trade is the only mechanism that can correct this trend. It should be clear that fair trade is not the savior of the developing region; there are many structural problems that not even free trade can bypass. However, free trade has very visible benefits that have led to changes in sectors of the society (Simmons 2003). The coffee industry has faced many historical processes that have changed the living standards of many producers in the developing region; the free trade movement has helped to create some level of equity as it aids marginalized farmers in the coffee industry."
Abstract This paper discusses the fairtrade movement - a new economic, social movement that is seeking to change the purchasing habits of individuals in developed countries through marketing and educational programs designed to heighten awareness of the plight of Third World farmers. The paper describes the goals of the fairtrade movement and the primary ways that the fairtrade movement has sought to achieve its goals. Specifically discussed are the movement's aim of capturing the consciousness of the politically-minded consumer by psychologically connecting the fairtrade label with the provision of economic assistance to farmers in developing countries.
Table of Contents:
A Brief Overview of the FairTrade Movement
The Role of the Consumer in Promoting FairTrade Conclusion
From the Paper "The fair trade movement has worked for the last several decades to close the economic divide between the First World and the Third World through the empowerment of small farmers in developing countries to determine their own terms of production and sale of their produce. It also works to promote environmentally and socially responsible farming methods and investments in those countries. Meanwhile, in the developed world, fair trade organizations work to capture the attention of consumers by gaining access to and influence in political institutions and by providing educational information, as well as through the more traditional business practice of marketing. These methods are used to create in the consumer a sense that their actions are morally right and appreciated by those individuals on the other side of the world, despite the fact that they can receive no feedback from those individuals. Politically conscious consumers in the developed world purchase fair trade goods as a minor form of protest against the traditional economic structures involved in international trade. The fair trade movement is part of a larger global effort toward creating conditions of social justice and political and economic equality for all the world's citizens."
Tags: production marketing investment developing, third world
Abstract The paper describes how those that promote free trade claim that overall production and profit is the highest good, and define efficiency and success as the ability to produce great quantities and great profit with a business. Those in support of fairtrade, however, point out that productivity itself is not a good, but is only useful inasmuch as it improves the lives of the mass of people. The paper examines whether
countries should be allowed to protect their industries with tariffs or control them with regulations, despite the concerns or desires of other countries.
From the Paper "Of these two arguments, Morris' is by far the most convincing, in part because he is far more holistic in his analysis of the situation. Irwin focuses primarily on the over-all financial gains for nations, but does not specify who those gains go to. Though he seems to believe that an overall per capita increase in national product will raise national standards of living, he seldom produces evidence to this effect and does not take into consideration that what may be true for one nation, such as Japan, would not be true for another nation which was emerging from a long history of serious economic depression (such as former colonies). Moreover, he seems to confuse personal well being with the well being of the international money market."
Tags: regional, legislation, competition, Irwin, Morris, Brazil, average, income
Abstract This paper discusses trade liberalisation and its alternatives in relation to global development, particularly in the third world. It deals with both the theoretical nature of the free market, as well as its failings in the real world.
Outline
Development and Dependency
Modern Anti-Liberalism
Alternatives to Trade Liberalisation
Conclusions
From the Paper "To fully understand the concept of trade liberalisation, it is first necessary to understand its alternatives - protectionism and interventionism. Protectionism is defined as 'the actions of a government to help its country's trade or industry by taxing goods bought from other countries' (Cambridge Dictionary, 2004). The theories behind this concept are ancient and allow for domestic industries to thrive where foreign products act as a threat. It also allows for taxes to be raised and the importation of undesirable goods to be restricted. Interventionism, as well as including the use of protection tariffs, is the more complex system of intervening in industry - for example, setting quotas, and import and export restrictions."
Tags: bank, bretton, economics, fair, free, imf, liberalisation, liberalization, third, trade, woods, world
Abstract With the fervor over the ethics of sweat shop production increasing, it is becoming important to look at viable solutions which provide meaningful change. The best example of alternative trade is the fairtrade movement, which has been gaining momentum all over the world. This paper looks at this movement as it seeks to provide producers and consumers with choices.
From the Paper "In recent years the media has been focusing more and more attention on the harm being done to people living in poor countries by multinational corporations. Whether it's a sportswear sweatshop in Southeast Asia or a logging company in the Amazon, consumers in the First World are becoming aware of the consequences their choices have. Unfortunately, very few news items talk about the positive alternatives to big business, paying more attention to the scandal which occurs when it is discovered that some celebrity's fashion line is manufactured using children in Burma. One important alternative which has become slightly more visible in recent years is the fair trade movement, which empowers producers and addresses issues of consumer responsibility."
Tags: consumers, empowerment, labourers, production, women
Abstract The paper explains the benefits of a human development approach to trade policy, but also notes that unrestricted trade can have significant negative components for workers in both developed and especially developing countries. The paper discusses how a gender analysis can be incorporated into a broader human development approach. The paper explains that an awareness of the role of gender in the process of developing trade policies is not simply a matter of equity or justice, but also of critical importance to economic development.
From the Paper "A human development to economic growth and trade policy is a relatively new economic model that is the endpoint of a long tradition of human-centred economics. This approach centers people and people's needs at the core of the economic processes; as their subject and not their object. While this understanding of economics is relatively new in many respects - with the first United Nations Human Development Report being published in 1990 - the basic features of this approach have been concerns of preeminent economic thinkers such as Smith, Mill, Marx and Malthus for generations (UNDP 2003, 22-23)."
Abstract This paper reviews various peer-reviewed academic and professional literature relating to chocolate in Mayan and Aztec society. It looks at how chocolate or 'cacao' was used by both the Mayan and Aztec cultures for various purposes including as a base of drink mixtures for consumption generally by the elite in society and as well was consumed on special occasions such as engagement and wedding ceremonies. It also examines how at one time chocolate was a form of currency in trade and bartering among peoples and nations.
Outline:
Introduction
The Origin of Chocolate The Uses of Chocolate Chocolate and Societal Status
The Science of Chocolate Chocolate: Trade Summary and Conclusion
From the Paper "Chocolate was additionally a food consumed during ceremonies celebrating engagements and marriages. Visiting dignitaries were given gifts of chocolate as well. Chocolate is stated by Norton to have been "associated with a lifesource, originating from or strengthened by its blood red coloring achieved by adding achiote." (2004; 3) Norton states that chocolate not only played a central role in Mayan and Aztec cultures as the basis for a drink of status but also was additionally "embedded in a range of social, diplomatic, and religious rituals." (2004; 3) Norton relates that the Europeans first encountered chocolate during the voyage of Christopher Columbus in 1502."
This paper provides a discussion of whether free trade is beneficial, in response to Patricia Hewitt's article; "Free Trade for a Fair, Prosperous World."
1,575 words (approx. 6.3 pages), 3 sources, 2005, $ 62.95
Abstract The paper explains that Patricia Hewitt in her article "Free Trade for a Fair, Prosperous World" argues that free trade in a global context is the key to promoting prosperity for all the people and countries of the world. The paper contends that it is not particularly surprising that she would make this argument, as she is the British Secretary of State for Trade and Industry and Britain is a strong supporter of globalization.
From the Paper "Patricia Hewitt in her article "Free Trade for a Fair, Prosperous World" argues that free trade in a global context is the key to promoting prosperity for all the people and countries of the world. It is not particularly surprising that she would make this argument, as she is the British Secretary of State for Trade and Industry and Britain is a strong supporter of globalization. Hewitt adopts the neo liberalist line of argument that a free market holds the key to all the ills of the world."
Abstract This paper demonstrates that in order to improve free trade agreements and ensure that they include adequate protection for worker's rights, food security and environmental regulation, the FTAA must be based on a new model, rather than on the failed model of NAFTA. It shows that unless this is done, the only people to benefit from these agreements will be the rich and powerful; and that the workers and traders of the poorer countries will continue to be exploited.
From the Paper "Free trade policies such as North American Free Trade Agreement (NAFTA) are widening the gap between the rich and poor in a number of ways. This is particularly true in Mexico; a country that has always been concerned with the protection issues associated with major trading countries in the world, tight controls, high tariffs and other restrictive policies. These restrictions have been revoked however in response to the demands to promote export-oriented production, eliminate obstacles to imports, and loosen corporate controls over national domains and enterprises. The result has been a blatantly inequitable distribution of wealth and power both within Mexico and between Mexico and other countries. The track record of NAFTA has raised concerns that this inequity will only be augmented by any such agreement."
Abstract This paper explains that sweatshops are factories that produce apparel, shoes, and other merchandise where employees, usually women and children, work under extreme conditions for very long hours and very little pay. The author points out that sweatshops became illegal in the United States with the passing of the Fair Labor Standards Act, but many American companies, such as Wal-Mart, maintain their low prices by selling products manufactured in sweatshops. The paper describes many ways that the individual can fight the continuation of sweatshops, such as asking companies to purchase only fair-trade products, purchasing only union-made products, and supporting organizations like OXFAM.
Table of Contents
Introduction
Definition of a Sweatshop
Sweatshops and the Underground Economy
How to End the Proliferation of Sweatshops
Conclusion
From the Paper "Indeed, changes in the global economy have added to the proliferation of sweatshops. The robust economies of the west and in Asia have created a great demand for apparel and electronics. This coupled with the increases in the costs of living have made sweatshops very difficult to stop. In addition, large discount chains are able to provide consumers with high quality products at extremely low prices. Many consumers do not take the time to investigate why the price of these products are so low."
Abstract This paper explains that increased trade between countries does create wealth; however, the rules of the trade game are such that the wealth being generated by increased level of international trade does not reach all sections of the world in a fair manner. The author argues that there is an urgent need for creating a level-playing field for all in international trade so that the benefits reach everyone; organizations such as the WTO and the IMF, which make and oversee trade rules and international monetary policies, must be purged of the pervasive influence of large multi-national corporations and big business. The paper relates that unprecedented development in the communication and information technologies in the last few decades and the eclipse of communism have given a great boost to international trade; international trade leads to prosperity and development but such trade also gives rise to a number of problems such as increasing inequality and rural poverty.
Table of Contents
The Pros and Cons of International Trade Reasons Why Increased International Trade is Beneficial
Growing International Trade Pros: Benefits of Increased International Trade Growth in Countries that Adopted Free-Trade Policies
Example of the United States
Cons: The Disadvantages
Policies Based on Corporate Interests
Removing the Guiding Hand
How International Free Trade Policies Favor Big Corporations
Corporations Exempt from Free Market Discipline
Inequality
Rural Poverty
Trade and Environment
Analysis of the Arguments
What Should Be Done?
Conclusion
From the Paper "The colonialist powers, particularly Britain, had realized the benefits of international trade after its industrial revolution although it is highly debatable whether such trade was beneficial for the colonies as well. In the last two decades, international monetary institutions such as IMF and trade organizations, particularly the Word Trade Organization (WTO) have been at the forefront for promoting free international trade. Unrestricted international trade has been touted as the panacea for all economic ills and an agent of development. The results of international trade have, however, been mixed. While supporters of free trade point to several success stories such as China, others point to the growing inequality, economic shocks such as the Asian Economic Crisis of 1997, and the increasing poverty in Sub-Saharan Africa as "fruits" of increased international trade (also known as globalization)."
Abstract This paper compares the values of free trade to managed trade. It begins by defining trade and identifying the ideal trade. The paper argues that free trade is the best policy to increase prosperity and equality in a capitalist society. It describes managed trade as the current situation, as tariffs and trade policy try to create fair grounds for commerce between two nations, as seen through the example of Japan and the United States. The writer states that protectionist policies, as used in managed trade, have been the anthem of the past and have led to war and conflict.
From the Paper "Trade is the exchange of goods and services between two countries. In order for trade to be successful, both sides must perceive that they benefit from the exchange, or the trade will not take place. In a perfect world, both parties go away from the trade happy that they have ridded themselves of something of which they have surplus, and gained something of value to them. However, in the real world, this does not happen all of the time and one party or the other walks away feeling ?cheated.?
Tags: world, trade, organization, wto, globalization, capitalism, capitalist, policy, global, economy, equality, tariff, japan, usa, united, states
Abstract The paper discusses the economic fundamentals of the law of supply and demand as well as of perfect competition to explore current and future economic dynamics in the specialty coffee market. The paper relates that demand for specialty coffees has experienced growth for some time, but suppliers are not receiving the expected increase in price because there is excess supply. The paper discusses how suppliers are turning to fairtrade market agreements to get a better price, but points out that ultimately, production will have to adjust to the market realities of perfect competition where there would be production cutbacks and/or market exits.
Outline:
Introduction
Economic Theory
Demand in the Specialty Coffee Market
Supply in the Specialty Coffee Market
Conclusion
From the Paper "The laws of supply and demand are the most important determinant of market structures (Economics basics: demand and supply). The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good and vice versa. The law of supply states that when the price of a good rises, holding other factors constant, producers will be willing to supply more of the product. Price, therefore, is determined by supply and demand. Economic equilibrium refers to a point where a market for a product has attained the price where the amount supplied of a certain product equals the quantity demanded."
