Tuesday, June 30, 2009

Week 3 "Fair Trade"

Fair Trade is a kind of business that helpful for producers or farmers to sell their goods or products to retailers directly without middleman. Middleman is a person or a company that stand in the middle of producers and retailer to get some benefit between both of them by giving a cheap price to the producers and add more prices on the product when they resell it; Finally the goods' price will be increase. So if we cut off the middleman, the product price will be lower and the producer will get high price on their goods or products.
In my opinion, fair trade is the good idea to use, but it is hard to make the connection between retailers and producers without the middleman. As we know that most of the producers are living in the rural area or poor country and the retailers are living in the city or downtown, so it will be hard for farmer or producer to find or sell their product directly to the retailer.

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