About This QuizIf you love coffee you are likely aware of the fair trade movement and what goals it is trying to achieve. This movement is responsible for improving the lives of thousands of farmers and workers in underdeveloped countries. Take our quiz to test your understanding how fair trade helps people.
What is the goal of the fair trade movement?
enable free trade
stop free trade
get more money to poor farmers
The fair trade movement sets out to empower producers at the local level by paying them fairer wages for their labor, improving their living conditions and giving them a stronger voice in the market.
What kind of impact do fair trade practices have on the consumer?
Fair trade practices have no noticeable direct impact on a consumer.
Fair trade practices will result in consumers choosing to pay a bit more for their purchases.
Fair trade practices give consumers the option of paying a bit more for their purchases in order to help poor farmers by buying products labeled as fair trade certified.
Fair trade practices mean that a consumer will pay slightly less for a fair trade product because of reduced tariffs.
What is an argument between proponents of free trade and proponents of fair trade?
Fair trade advocates want international trade with little if any regulation, free trade advocates want regulation to insure fairness.
Fair trade advocates want fair prices set on products, regulated to provide fair percentages for poor farmers and their laborers, whereas free trade advocates want international trade with little regulation.
There is no argument, as both groups have the same fundamental goals.
Fair trade advocates want fair prices set on products and regulation to establish percentages that go to farmers.
What is one of the key criticisms of globalization?
A criticism is that a global trade system will hurt local level workers.
A criticism is that with power centralized at an international level will penalize local workers in poor countries.
Both of the above are true of concerns about globalization.
Advocates of fair trade insist that free trade is not enough. They argue that without regulation, a global trade system with power centralized at the international level will always hurt local-level workers.
When did the modern fair trade movement begin?
The modern fair trade movement began in the 1950s with alternative trade organizations (ATOs). These were started by humanitarian groups that wanted to alleviate poverty in developing nations by cutting out middle men in trade with developed countries.
When did fair trade advocates start making a difference in proceeds going to poor farmers by educating consumers to buy certified fair trade products?
Fair trade advocates have been working to make a difference from the consumer end since the late 1980s. Instead of waiting for global and national groups to change rules that governing business, they simply changed the way they did business.
What is one of the most widespread and well-known fair trade items?
fair trade wine
fair trade tobacco
fair trade coffee
A significant amount of time and money goes into creating standards for fair trade products, so the movement focused initially on tea and coffee growers. Coffee continues to be one of the more successful fair trade products, but in recent years fair trade bananas and cotton have also become top sellers.
In 2001, when coffee was priced at a record low price of 45 cents a pound, what price was fair trade coffee selling for a pound?
$1.21 a pound
Coffee prices dipped so low in 2001 that an average coffee grower received only 45 cents per pound. However, fair trade buyers that year paid $1.21 per pound of coffee, enabling coffee growers to purchase necessities, because the difference went to the growers.
98 cents a pound
85 cents a pound
What was the name of the Dutch ATO that first proposed a labeling system to help mainstream products without compromising consumer trust in humanitarian efforts?
A Dutch ATO called Solidaridad first proposed this labeling system, which has grown into a globalized initiative with many organizations following its lead.
What is the primary function of Fair Trade International (FLO) on behalf of its many member organizations?
The FLO oversees fair trade certification on the production end by inspecting and ensuring facility compliance.
The FLO makes sure small farms supplying products follow basic environmental, health, safety and human rights regulations.
Both of the above are functions of the FLO.
The FLO oversees fair trade certification on the production end, inspecting farms and facilities in several countries. They ensure agricultural products are produced by small farms that must also follow basic environmental, health, safety, labor, and human rights regulations.
What is the name of a large fair trade labeling organization in the United States that works with the FLO to handle product labeling?
TransFair USA is the only third-party certifier of fair trade products in the United States. Instead of creating dependency on aid, TransFair USA uses a market-based approach to give farmers fair prices, workers safe conditions, and entire communities the resources for fair, healthy and sustainable lives.
What is the extra money sometimes charged on fair trade products and that is used specifically for improving local conditions called?
A sum paid in addition to fair trade prices is called a social premium. This money is used primarily to establish scholarships, health care programs, better sanitation, and small-business loans in some impoverished areas.
What is a feature of many fair trade products that helps to encourage people to purchase them even for a premium price?
Fair trade products are often superior in quality because of improved farming practices.
Fair trade products are very often certified organic.
Both of the above are true statements about fair trade certified products.
Fair trade products are often superior in quality because of improved farming practices and many of the products are certified organic. It is much easier to reconcile paying more for a product that is already superior to other competitors, while also being aware that your money is going to help underprivileged peoples.
What is a frequent complaint voiced by most of the critics of fair trade?
Critics feel that fair trade prices artificially inflate prices above market value without addressing real problems.
Critics feel extra money goes to producers doing nothing to insure their farms or manufacturing facilities are properly managed.
Both of the above are typical complaints voiced by critics of fair trade.
Critics feel that fair trade practices artificially inflate prices above the market value but fail to address basic problems like oversupply. Critics argue that all fair trade does in these circumstances is support underperforming farming or manufacturing practices.
What is the approximate number of farmers worldwide that fair trade benefits?
more than 980,000
more than 800,000
According to statistics published by Global Exchange, fair trade currently benefits more than 800,000 farmers worldwide. Fair trade certified products continue to appear on more store shelves as consumers accept fair trade brands more readily throughout the world.
more than 500,000
About This Quiz
If you love coffee you are likely aware of the fair trade movement and what goals it is trying to achieve. This movement is responsible for improving the lives of thousands of farmers and workers in underdeveloped countries. Take our quiz to test your understanding how fair trade helps people.