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Discuss costs and benefits of Fairtrade. - Scottish Highers Business Management - Question d - 2022
Question d
Discuss costs and benefits of Fairtrade.
Worked Solution & Example Answer:Discuss costs and benefits of Fairtrade. - Scottish Highers Business Management - Question d - 2022
Step 1
Discuss the cost of Fairtrade
Answer
One significant cost of Fairtrade is that it can be time-consuming and costly for producers to become Fairtrade certified. The certification process often involves extensive paperwork and compliance with strict regulations, which can lead to increased operational costs for farmers.
Additionally, the need to adhere to certain rules and regulations can be difficult to manage, particularly for smaller producers who may lack the resources or knowledge to navigate the process.
Step 2
Discuss the benefits of Fairtrade
Answer
One of the primary benefits of Fairtrade is that it allows producers to receive fair prices for their products, which protects them from fluctuating market prices. This stability can contribute to a better quality of life for farmers and their families.
Moreover, Fairtrade ensures appropriate working conditions and promotes fair wages, enhancing the overall quality of life.
Furthermore, having a Fairtrade certification can attract customers who are interested in ethical consumption, thus improving market access for Fairtrade products. This positive public image can also enhance brand loyalty among consumers.