Thursday, December 30, 2021

Essay on trade

Essay on trade



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Introduction: Fair Trade



The modern business environment is mainly focused on increasing profits and raising gains from trade. Being blinded by essay on trade high profits, essay on trade, the entrepreneurs commit immoral acts and do essay on trade follow the general trade standards. The disobeying of trade rules has a detrimental effect on the environment and fellow global citizens. Therefore, fair trade plays an essential role in stabilizing entrepreneurship activity. The purpose of this paper is to define the concept of fair trade and to discuss its value to society through the example of organic products.


Basically, fair trade is the worldwide movement with the aim of persuading producers to put the interests of consumers and environmental issues in the first place while manufacturing the goods and offering services. The followers of the fair trade movement are committed to making choices that are focused on the idea of improving the quality of life in the world. They promote sustainable development through better trading conditions, transparent agreements between the partners, and environmentally oriented goods and services production methods. Generally, the free trade movement aims to exclude unethical business practices and focuses on sustainable entrepreneurship development.


One of the most suitable illustrations of free trade is the company of organic products Urtekram. Being founded in Denmark init became one of the first eco-businesses and remains a widely-known organization until nowadays Films Media Group, The energy used to empower machinery does not depend on fossil fuels. Instead, to launch the local power station, the producer uses the renewable energy resource — locally grown hay Films Media Group, The success of Urtekram lies behind the wise distribution of goods and the commitment of the workers. He believes that in order to increase sales, the buyers should be essay on trade about why organic products are better for them and how fair trade goods will improve their quality of life and the environmental condition.


If the workers are passionate about sustainable development, they are capable of spreading awareness among people and persuading them to follow the fair trade movement. The example of the organic products firm Urtekram is incredibly helpful in investigating the fair trade concept. Firstly, by producing eco-goods, essay on trade, the company benefits both consumers and the environment. The buyers have an opportunity essay on trade purchase high-quality products that are not harmful to their health, while the planet does not suffer from the adverse ramifications of the production methods.


Secondly, besides producing goods, Urtekram also educates people about the essential value of fair trade to the community. Informing the customers about the benefits of organic products, the Urtekram representatives increase the level essay on trade sustainable development awareness. Consequently, essay on trade, the Urtekram company is a bright example that proves the fair trade positive effect on the quality of life. Overall, in the modern entrepreneurship environment, full of unethical business practices and immoral behavior, the concept of fair trade plays a critical role. Thus, essay on trade, companies like Urtekram make a significant contribution to fair trade enhancement.


Films Media Group. Fair trade, fair essay on trade Making green enterprise work. Films On Demand. Fair Trade Concept Overview, essay on trade. This paper was written and submitted to our database by a student to assist your with your own studies. You are free to use it to write your own assignment, however you must reference it properly. If you are the original creator of this paper and no longer wish to have it published on StudyCorgi, request the removal. Learn More. Continuity Planning: The University of Virginia. Cite this paper Select style. Select citation styles APA-6 APA-7 MLA-8 Chicago N-B Chicago A-D Harvard.


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Home — Essay Samples — Economics — International Trade — International Trade. Any subject. Any type of essay. International trade is the exchange of capital, goods, and services across international borders or territories. It is the exchange of goods and services among nations of the world. International Trade can develop an economy of the country. The increase in the export market is highly beneficial to an economy, but on the other hand the increase in import can be a threat to the economy of that country. It has been the worry of the policy makers to strike the right balance between free trade and restriction.


International Trade is characteristically costlier in term of domestic trade. There are a number of reasons such as, tariffs, cost of delay, cost related to differences in legal system, etc. The factors of production like labor and capital are more mobile within the territories of the country than across the other countries. International Trade is restricted to the exchange of goods and services. Another difference between domestic and International trade is that factors of production such as capital and labor are typically more mobile within a country than across countries. Thus international trade is mostly restricted to trade in goods and services, and only to a lesser extent to trade in capital, labor or other factors of production. Trade in goods and services can serve as a substitute for trade in factors of production.


Instead of importing a factor of production, a country can import goods that make intensive use of that factor of production and thus embody it. An example is the import of labor-intensive goods by the United States from China. Instead of importing Chinese labor, the United States imports goods that were produced with Chinese labor. One report in suggested that international trade was increased when a country hosted a network of immigrants, but the trade effect was weakened when the immigrants became assimilated into their new country.


Risks in International Trade are the major barriers for the growth to the trade. The assessment of risks in the International Trade plays an important role in deciding the modes of payment to be used for the settlement between buyer and seller. Understanding risk is one of the most important part of International Trade. How much volatility depends on your risk tolerance, an expression of the capacity to assume volatility based on specific financial circumstances and the propensity to do so. In ideal risk management, prioritization process is followed where by the risks with the greatest loss and the greatest probability of occurring are handled first, and rifts with lower probability of occurrence and lower loss are handled in descending order.


Risk management is the identification, assessment prioritization of risk and the possibility that an event will occur and adversely affect the achievement of an objective. Risk itself has the uncertainty. Risks can come from various sources including uncertainty in financial markets, threats from project failures, legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversely, or events of uncertain or unpredictable root cause. There are two types of events i. negative events can be classified as risks while positive events are classified as opportunities.


Trading globally gives consumers and countries the opportunity to be exposed to new markets and products. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services are also traded: tourism, banking, consulting and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import. In an international trade goods and services are involved, the buyer and the seller negotiate details about the method and timing of both payments and delivery. These negotiations require attention to complex details concerning credit arrangements, transaction structuring, legal issues, political and cross border risks.


Remember: This is just a sample from a fellow student. Starting from 3 hours delivery. Sorry, copying is not allowed on our website. We will occasionally send you account related emails. Once the farmers grow coffee, they expect a better price once they sell it. However, this is not the case. Most farmers end up receiving low prices for their coffee, which is less as compared to the cost of production. Eventually, many farmers end up languishing in abject poverty and constant debts. To snatch farmers out of this crisis, fair trade provides a viable solution. A fair trade system starts with the farmer as the principal producer.


For example, the farmer in Ethiopia employs a workforce to harvest coffee and pays them wages for every pound of coffee harvested. The farmers will then sell the coffee to a local cooperative for washing and drying. It is essential to the note that the farmer is a member of the cooperative as part of the fair trade criteria. The local Ethiopian cooperative will then measure and pack coffee of specific measurements pounds and export it to Alternative Trading Organizations ATOs in developed nations. This is one of the requirements of trade fair certification. An importer must comply with the fixed price. Otherwise, there is no fair trade certification. Also, the importer should provide additional expenses in the form of a credit to producers and technical expertise, which will help farmers to transform their inorganic farming into organic farming to achieve better yields.


The Alternative Trading Organizations also participates in the production process by roasting and packaging coffee before vending it to the final consumer under retail channels or established ATO vending mechanisms. Thus, fair trade of coffee means more to farmers as it enhances their livelihoods and welfare ranging from education to health to community development Global Exchange, p. Another trade fair is that of the sugar production industry. Most developed countries like the United States grow sugar that is insufficient for consumption. For instance, the internally produced sugar in the United States caters for 80 percent of its use.


This means that there is an additional 20 percent consumption fulfilled through importation from developing countries. However, the dilapidating international market prices, poor working conditions, and environmental deprivation pose severe challenges to farmers in developing countries. Nonetheless, fair trade sugar ensures that cane farmers from developing countries get reasonable prices for their commodity. Also, fair trade in sugar establishes a trade connection between farmers and importers. Moreover, the money realized from the sale of sugar to importers enables farmers to improve their livelihoods besides improving their yields BBC News, p.


In conventional non-fair trade farms, farmers spray their sugar cane with pesticides without following standards. In some of these farms, farmers burn the left sugar crops without taking in mind the impacts of pollution. However, in trade fair farms, farmers ought to adhere to the standards of spraying pesticides and herbicides and other environmental protection measures aimed at preserving the ecosystem and provide ecological value. Research shows that farmers who sell their sugar cane to certified fair trade organizations enjoy higher fair trade prices on top of receiving expertise on sugar cane production sustainable techniques. In the recent past, importers have opted to import sugar placed under fair trade thus extending more profits to the producers.


This is because the final consumers want to consume socially responsible commodities to raise the standards of the poor under the social justice system. It is also imperative to note that the fair trade price of goods under this system do not change so much as vending agents must adhere to the standards and rules of selling Fair Trade Certified Sugar, p. A fair trade system is vital to the farmer as it enables farmers to receive better pay for their products. Since the inception of this system, sugarcane and coffee farmers have significantly benefitted from the associated higher prices.


Besides, the products under fair trade system do not have excessive amounts of pesticides and always exhibit quality wanted by many consumers. Notably, the consumption of products bearing the trademark logo of fair trade not only helps to support the small farmer but also raising the living standards of many families in developing countries. BBC News. Hayes, Mark. On the efficiency of Fair Trade, Review of Social Economy , 64 4 , , Renard, Marie-Christine. Fair Trade: quality, market and conventions. Journal of Rural Studies , 19, , Need a custom Analytical Essay sample written from scratch by professional specifically for you?


certified writers online. Example of Fair Trade - Trade System. We use cookies to give you the best experience possible. If you continue, we will assume that you agree to our Cookies Policy. Table of Contents. Introduction: Fair Trade Goals of Fair Trade How it works Fair Trade Coffee Example of Fair Trade in Sugar Conclusion Works Cited. Learn More. We will write a custom Essay on Example of Fair Trade — Trade System specifically for you! Not sure if you can write a paper on Example of Fair Trade — Trade System by yourself? This analytical essay on Fair Trade System was written and submitted by your fellow student. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.

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