Fair Trade
Fair trade means that those involved in producing or harvesting a product are fairly compensated for their efforts.
That is, often a company will pay far less to the grower or producer of a product so that they can have bigger retail mark-up, which means more profit for the company at the expense of the producer.
But, in a fair trade system themiddle-man takes less, thus
leaving more for the producer.
For example, when you buy fair trade coffee the price is established so
that a proportionate amount of money goes back to the coffee bean
farmer and yet the retail price can be close to other coffees because
the fair trade retailer has chosen to take less money from the sale.
It therefore takes a very ethical business to choose to sell fair-trade
products.
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