What Is Fair Trade?

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| By MarkedOKC

MarkedOKC

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Quizzes Created: 3 | Total Attempts: 679

Questions: 9 | Attempts: 354 | Updated: Mar 22, 2023

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What does fair trade mean? How does it impact people on each end of the fair trade relationship? What do you need to know to make a difference? !?

Questions and Answers

1.

Fair Trade helps contribute to sustainable development and benefit of marginalized countries by:
- A.
  
  Offering better trading conditions for the farmer.
- B.
  
  Offering a "fair price" for the product. offering a "fair price" for the product.
- C.
  
  Securing the rights of the farmer.
- D.
  
  All of the above.
Correct Answer
D. All of the above.

Explanation
Fair Trade helps contribute to sustainable development and benefit of marginalized countries by offering better trading conditions for the farmer. This means that Fair Trade ensures that farmers are paid fair prices for their products, which helps to improve their livelihoods and economic stability. Additionally, Fair Trade also secures the rights of the farmer, ensuring that they are treated fairly and have access to resources and opportunities. Therefore, all of the above options contribute to the overall goal of Fair Trade in promoting sustainable development and benefiting marginalized countries.

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2.

How can I tell if a product is fair trade certified?
- A.
  
  It will have a Fair Trade label.
- B.
  
  It will be more expensive.
- C.
  
  It will be more eco-friendly.
Correct Answer
A. It will have a Fair Trade label.

Explanation
If a product is fair trade certified, it means that it has been produced and traded in a way that ensures fair wages, safe working conditions, and sustainable practices for the workers involved. To easily identify such products, they will have a Fair Trade label on their packaging or product. This label serves as a guarantee that the product meets the standards set by fair trade organizations and provides consumers with the assurance that their purchase supports ethical and responsible practices.

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3.

The principles of fair trade encourage:
- A.
  
  Buyers to purchase as much of a product as they can.
- B.
  
  Helping producers (especially in developing countries) help themselves.
- C.
  
  Buyers to give donations directly to the producer.
Correct Answer
B. Helping producers (especially in developing countries) help themselves.

Explanation
The principles of fair trade emphasize on helping producers, particularly those in developing countries, to become self-sufficient and improve their own livelihoods. This means providing them with fair wages, safe working conditions, and opportunities for growth and development. Fair trade does not promote buyers purchasing excessive amounts of products or giving direct donations to producers. Instead, it aims to empower producers to take control of their own economic and social well-being.

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4.

What does it mean to say a product was bought at a "fair" price?
- A.
  
  The price was predetermined by producers and buyers so that producers could cover their average costs.
- B.
  
  The price acts as a safety net to protect producers if the average buying price falls too low to cover costs.
- C.
  
  If the average price raises above the predetermined price, buyers must pay the higher price.
- D.
  
  All of the above.
Correct Answer
D. All of the above.

Explanation
A product being bought at a "fair" price means that the price was determined by producers and buyers in a way that allows producers to cover their average costs. It also means that the price acts as a safety net to protect producers if the average buying price falls too low to cover costs. Additionally, if the average price rises above the predetermined price, buyers are required to pay the higher price. Therefore, all of the given statements are correct explanations of what it means to say a product was bought at a "fair" price.

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1
0
5.

According to the Fair Trade Labeling Organizations International, how many individuals worldwide directly benefited from Fair Trade Certified production in 2008?
- A.
  
  3.5 million
- B.
  
  4.5 million
- C.
  
  5 million
- D.
  
  7.5 million
Correct Answer
D. 7.5 million

Explanation
In 2008, the Fair Trade Labeling Organizations International reported that 7.5 million individuals worldwide directly benefited from Fair Trade Certified production. This means that these individuals, who are often farmers or workers in developing countries, received fair wages and better working conditions through the Fair Trade system. The high number of beneficiaries highlights the positive impact that Fair Trade has had on improving the lives of individuals in marginalized communities.

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6.

Which of the following is a major benefit that cocoa farmers on the Ivory Coast receive from using Fair Trade practices?
- A.
  
  They can diversify their crops.
- B.
  
  The fair trade price ensures that farmers cover their cost so that they can avoid having to use child labor practices.
- C.
  
  They receive health benefits from Fair Trade practices.
Correct Answer
B. The fair trade price ensures that farmers cover their cost so that they can avoid having to use child labor practices.

Explanation
By receiving a fair trade price for their cocoa, farmers in the Ivory Coast are able to cover their costs without resorting to child labor practices. This means that they do not have to rely on the exploitation of children to meet their financial needs. The fair trade practices provide a sustainable income for the farmers, allowing them to support themselves and their families without compromising the well-being of children.

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7.

On average (without fair trade practices), for a candy bar selling for $.60, how much money goes back to the cocoa farmer?
- A.
  
  $0.01
- B.
  
  $0.10
- C.
  
  $0.20
Correct Answer
A. $0.01

Explanation
The correct answer is $0.01. This means that on average, without fair trade practices, only $0.01 goes back to the cocoa farmer for a candy bar selling for $0.60. This suggests that the majority of the profit from the sale of the candy bar goes to other parties involved in the supply chain, such as manufacturers, distributors, and retailers, rather than the farmers who produce the cocoa.

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2
0
8.

The number of children forced to work as slaves on cocoa farms in Africa is estimated to be as high as:
- A.
  
  6,500
- B.
  
  10,000
- C.
  
  15,000
Correct Answer
C. 15,000

Explanation
According to estimates, the number of children forced to work as slaves on cocoa farms in Africa is as high as 15,000. This suggests that there is a significant issue of child labor in the cocoa industry in Africa, with a large number of children being exploited and forced to work in harsh conditions. This highlights the need for greater awareness, regulation, and action to address this problem and ensure the protection and welfare of these vulnerable children.

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9.

Without Fair Trade practices, what happens worldwide?
- A.
  
  Small family farms cannot pay for costs of production.
- B.
  
  Young children are forced to work on farms instead of going to school.
- C.
  
  All of the above.
Correct Answer
C. All of the above.

Explanation
Without Fair Trade practices, small family farms may struggle to compete in the global market, leading to financial difficulties and an inability to cover the costs of production. Additionally, without Fair Trade, there may be a lack of regulations and oversight, which can result in child labor being prevalent on farms, with young children being forced to work instead of receiving an education. Therefore, the correct answer is "all of the above" as both scenarios are likely to occur without Fair Trade practices.

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Current Version
Mar 22, 2023

Quiz Edited by
ProProfs Editorial Team
Mar 02, 2011

Quiz Created by
MarkedOKC

What Is Fair Trade?

Fair Trade helps contribute to sustainable development and benefit of marginalized countries by:

How can I tell if a product is fair trade certified?

The principles of fair trade encourage:

What does it mean to say a product was bought at a "fair" price?

According to the Fair Trade Labeling Organizations International, how many individuals worldwide directly benefited from Fair Trade Certified production in 2008?

Which of the following is a major benefit that cocoa farmers on the Ivory Coast receive from using Fair Trade practices?

On average (without fair trade practices), for a candy bar selling for $.60, how much money goes back to the cocoa farmer?

The number of children forced to work as slaves on cocoa farms in Africa is estimated to be as high as:

Without Fair Trade practices, what happens worldwide?