Economic Effects Of Fair Trade

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In this paper, I will consider fair trade. First, I describe the definition and development of fair trade and consider its influences on labor problems. After that, I will give the issue of fair trade and think about the solution. The reason why I was interested in this topic is that I learned its effects on labor problems when I accepted a seminar at Saitama University. At one lecture of the seminar, I watched a movie that the title is “The True Cost” and impressed. It mentioned labor problems and the responsibility of companies in the fashion industry. Then fair trade is described as one of the solution, so I want to introduce about it. Easy to say, fair trade is a way to pay proper wages to workers and protect their minimum lives in the…show more content…
According to an essay, “In 2007, the amount of trade in the world was about 1599 trillion yen, but the amount of fair trade was only 427 billion yen. So the rate of fair trade is only 0.027%” (Kotorii). Therefore, next, I will consider the effect of fair trade to broaden its market. There are various influences of fair trade. For example, workers will improve their life by rising their wage. The quality of corporation will rise to sell the products which are more expensive than usual. Moreover, traditional industrial art objects are bought for proper price, so fair trade will lead to protect the unique cultures. Besides, a more worthwhile merit is that fair trade is different from aid. Aid means that superior one support the opponent, which is inferior or need help. So there is a clear gap of the position. Therefore, it may prevent the opponent from becoming independent due to depending on it. However, the relationship of fair trade is equal between the seller and buyer (Kotorii). So they will be able to avoid making a disadvantage and make a…show more content…
As one way of it, there is that fair trade label gives the right to sell and buy anywhere such as supermarkets. This was tried in the past, but the effect was not enough to extend fair trade all over the world. So in my opinion, the label should have the right of monopoly in the market. In doing so, all corporation will have to start fair trade and all trade will be fair. The organizations of fair trade must have more power to accomplish this plan. So it is difficult and a little radical, but in order to realize fair trade and eliminate the gap of income, we have to change the structure of modern trade, which pursuit the lower cost to win the competition of low price and doesn`t consider the workers. Therefore, by this plan, we should destroy the current trade system to help workers who are given low pay and have difficulty in

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