Fair Trade

The video discusses the challenges faced by coffee farmers in Guatemala, who are paid low prices for their beans. The Fair Trade Foundation aims to address this by ensuring fair prices and better business practices. Certified growers receive a minimum price, and fair trade helps them form cooperatives for better efficiency. The initiative also provides a premium for community projects, benefiting millions. Despite these efforts, the global trading system still favors developed nations, but fair trade seeks to improve conditions for producers in poorer countries.

What is the main goal of the Fair Trade Foundation?

• To eliminate the need for international trade

• To reduce the cost of production for large corporations

• To ensure fair prices for producers and promote better business standards

• To increase the price of luxury goods

How does fair trade help coffee growers in Guatemala?

• By offering interest-free loans

• By ensuring a minimum price per kilogram of coffee beans

• By providing free seeds and equipment

• By reducing the cost of fertilizers

What is the concept of 'economies of scale' in the context of fair trade?

• Increasing production efficiency by forming cooperatives

• Expanding farms to cover more land

• Reducing the number of workers to cut costs

• Lowering prices to increase sales volume

What is the fair trade premium used for?

• To fund international marketing campaigns

• To buy luxury goods for farmers

• To invest in community projects like education and infrastructure

• To pay off debts

How does fair trade aim to balance the global trading system?

• By increasing tariffs on imported goods

• By favoring developed nations

• By promoting free trade agreements

• By facilitating better wages and living conditions for producers in poorer countries