Fair Trade Essay

Fair Trade

The trade should be a factor for development and the eradication of poverty, but in fact its turned into a way of unfair economic development in developing countries and as a tool to impose far-economic policies, and far from justice by developed countries to developing countries, where trade between developed and developing countries is happening on the basis of unequal, which requires to be more Justice and fairness for the protection of the weaker nations.

The idea of (fair trade) started in the early nineties of the twentieth century, when some organizations have adopted European and American institutions, the idea represented in achieving a fair price for the products of small farmers and exporters of agricultural materials

Wholesalers:

Wholesalers take ownership to the goods and services from the manufacturer companies that they are intermediaries for. They own the products which they sell, and work with large numbers of product, they buy very huge Quantity and store it in their own storage until the time that resell them, usually they do not sell to the final consumer, but they sell to other intermediaries like the retailers and in the higher price from which they paid. So they do not take commission as the agents do.

Distributors:

The distributors work as the wholesalers work, they take the ownership of the product and store it then sell them to the retailers with a profit or other intermediaries. But the difference is that distributors allied with complementary products. For example Pepsi Cola distributors, will not distribute the Coca Cola products, and Coca Cola distributors, will not distribute Pepsi Cola

For example: when you want buy 1000 unit of T.V you go to any shop to buy the TVs on high price because the any shopkeeper will selling you the TVs with adding transportation cost (including fees and any transactions cost) plus his profit for each TV , while the intermediaries can selling all quantity you need with low prices, because they will buying the TVs from manufacturing directly and delivered to you with lower transaction and lower procedures