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What are the foundations of the fair-trade movement? The foundations of the fair-trade movement are built upon the producers, the fame’s, who everyone who participates in the coffee market relies upon. Their main principles are market access for marginalia producers, sustainable and equitable trading relationships, capacity building and empowerment, and consumer awareness raising and advocacy. These principles are instated to protect the fame’s from greatly fluctuating prices and the volatility of the product they grow.
In many areas of the world, the nonusers do not know how their coffee is created, and this ignorance is the basis of the fair-trade movement. Has Cafe© Direct been successful yet? Why? Which strategic recommendations WOUld you make to CEO Anne McCain? In terms Of the implementation Of the fair-trade movement within Cafe© Direct, Cafe© Direct has been successful in their implementation. As far as letting the consumers know about the reasons Cafe© Direct has a price premium, aside from its gourmet beans, Cafe© Direct is slowly but surely starting that trend.
They are already associated with nee physical coffee shop that sells coffee made by their beans, and that is the most direct way to promote their cause and the fair-trade movement. We would recommend some form of awareness, possibly using a celebrity, to promote the free-trade foundation of Cafe© Direct. Cafe© Direct could also change from the $1. 60 per pound for the producers, to a sliding percentage scale over the market price, so that producers will always be ahead of the market, yet Cafe© Direct can price their beans accordingly.
Which strategic recommendations would you make to the “classic trade” layers (especially to large multinational firms such as Nestle or General Foods)? Eventually, the “classic trade” players will have to create a product that follows their fair-trade movement, but those would be labeled premium brands. Even if they have to take a loss on their free-trade product, they control so much of the market that it’s not a reasonable tradeoff.
These large companies don’t have outright start a new subsidiary, they can acquire any number like Cafe© Direct, placing a large company in the position to change the coffee market towards the free-trade movement. What are the different activities and recommendations that you would provide to the following organization: FLOP International, FLOP-CERT., World Fair Trade Organization, and F-reiterated Action Network? The World Fair Trade Organization needs to speak out louder, making the fair-trade movement’s voice heard.
They need to rally organization, as well as political leaders, to fall in line and push the fair-trade agenda. Secondly, they need to educate consumers about fair-trade and the benefits of the concept. FLOP-CERT. needs to review more products, placing an emphasis on companies that develop numerous free-trade products. They could work with the World Fair Trade Organization to help foster publicity in these companies and eventually change the market. FLOP International needs their fair-trade standard to be known amongst all companies, and more importantly consumers.
If the consumers know about the fair-trade standards, they may be more inclined to purchase fair trade products created by companies who abide by free- trade agreements. All of these companies can turn to the Fairytale Action Network to look for volunteers, and possibly companies, whom are willing to help the fair-trade movement. Business Assignment 1 Fair Trade Issues To begin, will identify some of the major issues regarding fair trade practices and issues effecting businesses.
First, governments want a high quality of life, higher standard of living, and fuller employment for their citizens. The objective of fair trade is to realize these objectives. A question arises when looking at business practices if fair trade actually exists. The end result is that as government has intervened fair trade practices become a bit more convoluted and complex. Businesses find that fair trade is not as simple as it should be. Tariffs, taxes, restrictions, and laws imposed by the government by have increasingly burdened making the trading of goods and services free and fair.
Second, it is thought that fair trade restrictions placed upon foreign goods lowers the standard of living for American consumers. As, trade barriers, quotas, and tariffs represent the equivalent of hidden taxes imposed upon the end consumers of those goods. As such, it raises the cost of those foreign products consumed to the end user placing an inequitable burden on those least able to afford it. The Lignite States does not stand alone in limiting air and free trading among businesses throughout the world.
A case in point is the World Trade Organization (WTFO), the international body dedicated to the promotion of free trade which does not allow small business participation only large corporations. Third, International corporations with headquarters in one country may operate mainly in other countries. Such practices provide much of the controversy surrounding the fair trade practices of businesses worldwide. These large multinational corporations are avoiding the restrictions, taxes, and tariffs imposed by governments when directly doing business within other countries.