Chapter 1. Introduction 1.1 Research Background Globalization is an important contemporary phenomenon and it is difficult to avoid the trend. Its development as well as make people recognize each other's lives in an interdependent global village. Therefore, globalization encourages people to care about many global equity issues such as peace, justice, environmental protection. Like many phenomena, there are both sides of pros and cons in globalization. Globalization can create new opportunities for the expansion of international trade, and enhance global commodity circulation and improve cultural exchange (Krier, 2001). It is beneficial to the development of integration with the global economy. Emphasizing efficiency in terms of globalization …show more content…
The movement particularly emphasizes on exports from developing countries to developed countries, with products such as handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, chocolate, flowers and gold. Moreover, coffee is one of the most widely traded goods in the world. For many developing countries, coffee trade is an important source of income. Producers can provide a better trading and improve terms of trade. Moreover, this allows producers to improve workers’ living environment and future life in general (De Pelsmacker, Driessen and Rayp, 2005). Coffee market in Taiwan is also important. Since 1998, Starbucks enter the Taiwan coffee market, more people have adapted the habit of drinking coffee (De Pelsmacker, Driessen and Rayp, 2005). Taiwanese consumers have more opportunities to face different types of coffee options. Consumers usually have positive attitudes for ethically made products. Most of consumer would be willing to pay a higher price for fair trade coffee, but they care more about the brand, label, and taste of the coffee …show more content…
In the late 1940s the initial fair trade movement began in the United States. During that period Fair trade was often regarded as a political gesture to neo-imperialism. The slogan 'Trade not Aid' at the time, obtain international recognition. In addition, it adopted the United Nations Conference on Trade and Development (UNCTAD) to focus on the establishment of fair trade relations with the developing countries (Littrell and Dickson, 1999; MORI, 2000). At the same time Fair Trade in Europe started from the late 1950s. British Non-Governmental Organizations (NGO) name Oxfam gradually to sell some crafts by Chinese refugees made in Oxfam stores (Littrell and Dickson, 1999; MORI, 2000). And then in 1964 it created the first fair trade organizations. Moreover, Dutch third world groups also began to sell cane sugar and this produces with the message 'by buying cane sugar you give people in poor countries a place in the sun of prosperity' (Littrell and Dickson, 1999; MORI,
Brazil is known for having a very large biodiversity and having a huge portion of the Amazonian forest in its land. Yet, because of globalization, this country suffers a great deal environmentally wise and socially also. Both adults and children have to work in order to be able to survive. Many of these workers are exploited and changing this reality is quit hard. It all comes down to profits at the end: exploiting workers is much cheaper than paying them properly. At least, there are some people who are actually putting some effort on solving this problem. This is where the issue involving coffee in Brazil comes in. The actors involved in this product are either greatly benefited or exploited and the working conditions for the farmers are quit terrible. However, there are solutions that were proposed in order to protect the coffee growers such as fair trade. It is then understood that coffee production in Brazil has negative effects on coffee laborers, but to a lesser extent on those who work in the fair trade business.
...-operative handling distribution of coffee (Kolk 2013:327-28). Fair trade also allows consumers to consider the type of product being purchased by informing them of the fair and ethical practices behind the coffee beans (Kolk 2013:334). By supporting fair trade coffee the consumer can feel a sense of contribution in supporting the farmers’ livelihood.
Nowadays, Globalization is a main trend for the world economic. The world’s economy has become fully integrated. There are no barriers and borders to trade around the world.
Globalization of goods /services and fair trade has helped in providing developing countries with more output of products, selling and producing techniques that are more ethical, open future investments through funding and technology. While some have benefited, others have lost jobs and resources. Coffee the second valuable traded commodity in the markets, has needed help in this industry with fair trade. These farmers crops usually grown in remote areas, have no access to credit , are indigent and in need of funding and technology. “A labor-intensive crop, coffee grows well on small and steeply slope parcels of land. Small scale producers often with landholding smaller than 3 hectares, constitute the majority of coffee producers in the country and are concentrated in some of the poorest regions.” Case Studies...(2009). The reasons these farmers do not profit well in the markets today, because they have lost their place as the foreign exchange earner allowing other competitors like Vietnam, Cost Rico, Ethiopia, India ,Tanzania and Uganda to emerge. “When the collapse of the ...
Fair Trade can be defined as “a trading partnership, based on dialogue, transparency, and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South. Fair trade organizations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional trade”. (Lyon and Moberg 2010) By encouraging more ethical consumer choice, Fair Trade challenges processes which devalue and exploit people in disadvantaged positions and the environment by aiming to re-embed commodity circuits within ecological and social relations. (Lyon and Moberg 2010) Established and enforced by Non-Governmental Organizations (NGOs), Fair Trade is a voluntary system with its success driven by the wi...
Fair Trade will partner with corporations such as manufacturers, retailers and other companies who are associated with buying produce from producers in undeveloped c...
Most of the coffee produced by Fair Trade farmers does not sell to Fair Trade buyers. Fair Trade producers sell most of their coffee on the regular market. While this indicates that the global coffee market prices are high, which is good for coffee producers, it also demonstrates a disadvantage for Fair Trade coffee producers. Due to the explicit and implicit costs added to production through Fair Trade compliance, the coffee Fair Trade producers sell in the regular market makes less profit than coffee produced with lower operating costs. When market prices are above the price floor, profit-maximizing firms would benefit to avoid the costs of Fair Trade certification and compliance. Why then do producers voluntarily opt into Fair Trade? A more likely explanation is that producers use the Fair Trade certification to reduce the risks associated with the boom-and-bust nature of coffee production, rather than to benefit from a market that will increase their productive capacity and lift them from poverty. Dragusanu et al (2014) support Fair Trade use, but Claar and Haight (2015) criticize their paper for glossing over the costs of Fair Trade, arguing that it misrepresents the significance of the costs in the production of
... due to growing sales figures, but equally importantly on a personal level: increasing the well-being of the most marginalized people, the Fair trade movement gives hope by improving trading conditions for farmers and workers in the developing world a little bit every day, hoping that one day, all ‘conventional’ trade will be Fair. Fair trade emerged as a social movement commitment to challenge global inequalities. This initiative’s engagement in the transnational terrain of alternative globalization carries great normative strength in theory. FT can gain prominence in the theorization of an alternative globalization and create a breakthrough in producer consumer relations, if the problems with ‘practice’ are understood and accommodated in ‘theory’ which is responsive to the needs of the local context, thereby kick-starting a revolutionary process of ‘development’.
The fair trade market is an approach to a more feasible development that helps the farmers improve the production of coffee by providing them with many resources. The Fair Trade certified label helps the consumers in knowing that their coffee is high quality (6).” Economics of Fair Trade” states that the Fair Trade sets a minimum set price for their coffee that covers the price it costs to produce it. It links farmer cooperatives directly to the United States, creating long term contract and livable lifestyle. Farmers are receiving better incomes that enable them to live a better lifestyle. As it benefits the farmers it does hold a major part in the North. By giving the South a fairer price, it benefits the United States because this is done through trade not aid. The United States receives their high quality coffee and in return knowing that their “dollar” is helping them grow the coffee efficiently (Economics of Fair Trade). The Fair Trade Market is vital for the nation in either consuming the coffee or using the finances to make ends
The description in globalization lies in the widening of international flows of trade, finance and information in a single integrated global market, while on the other hand prescription is brought in the sense of liberalizing national and global markets in the conviction that free flow of trade and information will be reason for production of best outcome growth and human interests and welfare. In addition, the most important aspects of economic globalization are breaking down of national economic obstacles and barriers, the international broadening of trade, monetary and production of activities and the emergent power of global corporations and international financial institutions in these processes.
It is widely accepted that there are a lot of benefits globalization brought to our life. Firstly, advanced transportation system makes different places of the world closer. Considerable amount of exciting tourists can visit remote villages in the corner of the earth. Secondly, new telecommunication, such as internet and TV, makes people’s common life colorful. Fans in China who are interested in Manchester United can also share their joy with their counterparts in United Kingdom, when the team won a game. Moreover, we can buy the popular products of high quality made in other countries, such as automobiles of Volkswagen and furniture of IKEA. Finally, globalization can lead to cooperation in trade between different countries. Even though globalization can bring so many conveniences to us, we still worry about its severe negative aspects.
Fair trade is a social organisation with the purpose of assisting producers in developing countries to improve trading conditions and encourage sustainability (Hayes and Moore, 2005). It supports higher income to exporters as well as higher social and environmental standards. Attention is directed towards trade between developing countries and developed countries, most notably handicrafts, coffee, cocoa, tea, handicrafts, honey, preserves, spreads, perishable fruits and vegetables and processed products (Mohan, 2010).
Nowadays , we are living in developing era. It is true that Its global world. Globalisation means. mostly economic event, the mixture of national economic structures, the fast increasing international economic, cultural and technological exchange (The Australian APEC Study a Centre, 2002). Globalisation has created advantages and disadvantages to develop and developing countries. Globalization helps to increases an International Trade, mainly creation of new trade treaty between the developing and developed countries. Globalization binds nations together, the letdown of one country has the possible to draw many others down (Tverberg,G., 2013). Developed as well as developing countries both can enjoy the benefits of
Globalization is a term that is difficult to define, as it covers many broad topics in the global arena. However, it can typically be attributed to the advancement of economic, social, and cultural interactions among the companies, citizens, organizations, and governments of nations; globalization also focuses on the interactions and integration of countries (The Levin Institute 2012). Many in the Western world promote globalization as a positive concept that allows growth and participation in a global community. Conversely, the negative aspects rarely receive the same level of attention. Globalization appears to be advantageous for the privileged few, but the benefits are unevenly distributed. For example, the three richest people in the world possess assets that exceed the Gross National Product of all of the least developed countries and their 600 million citizens combined (Shawki and D’Amato 2000). Although globalization can provide positive results to some, it can also be a high price to pay for others. Furthermore, for all of those who profit or advance from the actions related to globalization, there are countless others who endure severe adverse effects.
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.