All financial transactions are routed through banks and can easily be tracked. They are often subject to scrutiny. By exchanging the product or service they produce for one of equivalent value, a business can increase its profitability.
Fairtrade means paying farmers in the Third World a fair price for the work they do, and a guarantee that what they are paid will always cover the cost of production - no matter how low the market price falls. In many developed countries, the government provides a lot of subsidies to farmers, as a result of which they are able to sell their produce at a price lower than the cost of production in poor countries, affecting the livelihood of the farmers.
Fairtrade is not about charity - if producers are paid a fair price for their products, they won’t need charity.
How does Fairtrade help producers?
Fairtrade helps about 500,000 farmers and workers get
* Fair wages
* Decent working conditions
* Security of long term contracts
* Improved health and safety standards
* Environmental improvement and sustainable production
Fair trade practices, world trade