Fair Trade Price

Fair Trade Price
A minimum price paid for certain agricultural products imported from developing countries. Fair trade is a movement which believes that it is unethical to pay producers in developing countries the market price if it is too low to provide a sufficient quality of living. Instead, certain importers agree to pay producers in the developing world at least a minimum price for their goods. The goods are then imported to developed nations where they are promoted as fair trade products, and normally sold at a higher price.

For goods to be labeled as Fair Trade Certified, they must comply with regulations outlined by the organization FLO-CERT and/or other local fair trade labellers. Opponents of the fair trade system argue that establishing a price floor results in oversupply. It is argued that this oversupply can actually lead to lower market prices for producers that are not able to sell to fair trade buyers.


Investment dictionary. . 2012.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • Fair trade debate — Fair trade s increasing popularity has drawn criticism from both ends of the political spectrum. Different arguments are used by those who favour and by those who oppose fair trade, or feel that more strict standards and higher fair trade prices… …   Wikipedia

  • Fair trade (disambiguation) — Fair trade is a consumer driven movement to promote fair prices and reasonable conditions for producers of primary goods in developing regions. The expression may also denote:* Fairtrade certification, a widespread standard for labelling products …   Wikipedia

  • fair trade — ➔ trade1 * * * fair trade UK US (also fairtrade) noun [U] ► SOCIAL RESPONSIBILITY a system of trading with a developing country in which a good price is paid for their exports, and the people who produce the goods have good working conditions and …   Financial and business terms

  • fair–trade agreement — n: an agreement between a producer and a seller that commodities bearing a trademark, label, or trade name belonging to the producer be sold at or above a specified price ◇ Most fair trade agreements are illegal. Merriam Webster’s Dictionary of… …   Law dictionary

  • fair-trade — ☆ fair trade [fer′trād′] adj. designating or of an agreement whereby a seller undertakes to charge no less than the minimum price set by a manufacturer on a specified trademarked or brand name commodity: most U.S. states no longer permit such… …   English World dictionary

  • fair trade agreement — fair trade agreement, U.S. an agreement which permits manufacturers to set minimum price levels on products. In states that have legalized this agreement, retailers must hold to the price levels set by the manufacturers …   Useful english dictionary

  • fair trade agreement — UK US noun [C] COMMERCE ► an agreement in which a company cannot sell a product for less than the price agreed with the manufacturer. This is illegal in the US and many other countries …   Financial and business terms

  • fair-trade agreement — fair′ trade′ agree ment n. bus an agreement between a manufacturer and a retailer that a trademarked product will not be sold below a specified price: illegal after 1975 • Etymology: 1935–40 …   From formal English to slang

  • Fair trade — For other uses, see Fair trade (disambiguation). Fair trade is an organized social movement and market based approach that aims to help producers in developing countries make better trading conditions and promote sustainability. The movement… …   Wikipedia

  • fair trade — noun 1. trade that satisfies certain criteria on the supply chain of the goods involved, usually including fair payment for producers; often with other social and environmental considerations • Hypernyms: ↑trade 2. trade that is conducted legally …   Useful english dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”