Fairtrade

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VYTAUTAS MAGNUS UNIVERSITY

Faculty of Economics and Management

"Vdu

hOMEWORK / FAIRTRADE. LITHUANIA’S CASE

EKON3008_EN INTERNATIONAL TRADE

Student: x

KAUNAS, 2016

CONTENT

KAUNAS, 2016 2

CONTENT 2

INTRODUCTION 2

THEORETICAL ANALYSIS OF THE TOPIC 4

I.SHORTLY ABOUT FAIRTRADE 4

II.HISTORY OF THE FAIRTRADE 4

III.FAIRTRADE PURPOSES AND BENEFITS 6

IV.FAIRTRADE PREMIUM 9

V.POPULARITY OF THE FAIRTRADE 10

RESEARCH TOPIC ANALYSIS 10

I.SHORTLY ABOUT THE FAIRTRADE IN EUROPE 10

II.UK SUCCESS IN FAIRTRADE MARKET 12

III.FAIRTRADE PROBLEMBS IN LITHUANIA 13

IV.SITUATION IS GETTING BETTER 17

V.SPREAD THE BELIEF INTO THE FAIRTRADE 18

EMPIRICAL RESEARCH RESULTS AND VALUATION 19

CONCLUSIONS 21

REFERENCES 23

3.GlobeScan, Shopping Choices Can Make a Positive Dif

fference to Farmers and Workers in Developing Countries: Global Poll 23

INTRODUCTION

Nowadays, when people are willing to share what they have with those who do not, Fairtrade becomes more and more important. This is a kindly way to spread the goodness, but everything is not so easy. Fairtrade includes a lot of things in one word, for example a social justice movement, an alternative business model, a system of global commerce, a tool for international development, etc. It means different things to

different people.

Some well developed countries use the Fairtraid system for decades and do not face any problems, but in the same continent, at the same time where are countries in which the Fairtrade system is not so developed.

The paper exa

amines the Fairtrade and it is divided into three main parts of the analysis, theoretical analysis of the Fairtrade, and Lithuania’s case, research of this topic and the empirical research results valuation. The first part has five sub – themes, which, I hope, will answer all the questions about the Fairtrade, its history. The first part will also show the advantages and benefits of this trade not only for the farmers but for the customers as well.

Research topic analysis is about Faitrade in Europe and it answers the questions, what is the difference between the European countries, why they cannot show similar results on selling Fairtrade labeled products, as well as, examination on United Kingdom success in Fairtrade and the main res

search is based on Lithuania’s case. Which problems it faces and how raise the demand level of the Fairtrade products. To find out these answers, were used different data, articles and comparison between countries.

THEORETICAL ANALYSIS OF THE TOPIC

SHORTLY ABOUT FAIRTRADE

Fairtrade is an alternative attitude to a traditional trade and it is based on a partnership between producers and consumers, consumers and producers. It is also a social movement whose main goal is to assist producers not in the strong countries but

t in developing countries, to achieve better, higher trading conditions and also to promote sustainability. When the farmers from undeveloped countries sell their products on the Fairtrade terms, it provides them with a better transaction and improves their trade terms. This gives them the great opportunity to amend not only their current situation but also to improve their and their families’ conditions of life. Furthermore, it is a possibility to reach future plans and wishes of instance qualitative education for children, opportunity to buy better quality of goods and services, to get good medical services, to have better houses and more. The main thing which we should keep in mind as consumers, that it is not a big deal to help people who are working hard and getting almost nothing from it. Even our casual shopping can be small but such a meaningful assistance for them and we can easily contribute to reducing poverty.

HISTORY OF THE FAIRTRADE

There are many stories about the history of the Fairtrade and when it began to exist. Some people think that Americans were the first ones who started to think more globally and “invented” the Fairtrade mark. With their Ten Thousand Villages who in 1946 began buy

ying needlework from Puerto Rico and also SERRV (a nonprofit, fair trade organization dedicated to lifting disadvantaged artisans, farmers, and their families out of poverty), they began to trade with poor, undeveloped communities in the South in the late 1940s. However, the first formal “Fair Trade” shop, which was selling needlework and some other things, was opened a bit later, in 1958 in the USA.

It is thought that the first steps of the Fairtrade in the Europe were taken in the late 1950s when the Oxfam shops of United Kingdom started to sell crafts which were made by Chinese refugees. In the next decade, about 1964 – the first Fairtrade organization was created. Similar actions took place in the Netherlands and in 1967 Fair Trade organization was established which was called Fair Trade Original.

At the same time, Dutch third world groups began to sell cane sugar with the short message which said: “by buying cane sugar you give people in poor countries a place in the sun of prosperity”. These groups also began to sell handicrafts from the South, and in 1969 the first “Third World Shop” was opened. World Shops (or as it also called in other parts in the world – Fair Trade shops) hav

ve made the biggest influence in the Fairtrade movement. They created not only points of sales but they also were very active in the advertising these goods as well they were educating people about the Fairtrade and why it is good for all of us.

In 1960s – 1970s, socially motivated persons in plenty countries of Asia, Africa and Latin America and Non-Governmental Organizations (NGOs) understood the need for fair marketing organizations which would grant advice, support and help for the disadvantaged producers from undeveloped countries, with the goal of bypassing corporate retail and department stores. The equivalent Fairtrade growth from the end of 1960 was closely related with development trade. By this way, it was attempted to stop poverty and sometimes the other accidents in the South, focused on the marketing of craft products. Usually the establishers were from the large, developed and sometimes religious agencies in Europe.

1988s was the beginning of the first Fairtrade label “Max Havelaar” under the Dutch development agency Solidaridad. The first Fairtrade coffee was from Mexico and it was sold into supermarkets in The Netherlands. It was branded “Max Havelaar” who opposed the exploitation of coffee pickers in Dutch colonies.

Late ’80s/early ’90s – The Max Havelaar initiative is re. . .

Internet source entries:

Marlike Kocken, SIXTY Years of Fair Trade. A brief history of the Fair Trade movement.

Internet access: <http://www.european-fair-trade-association.org/efta/Doc/History.pdf>, (November 2006)

Alina Kairaitytė, Juozas Ruževičius, Sąžiningos prekybos plėtros galimybės Lietuvoje,

Internet access: < http://vddb.library.lt/fedora/get/LT-eLABa-0001:J.04~2014~ISSN_2335-750.N_69.PG_71-88/DS.002.0.01.ARTIC>, (March 03, 2014)

GlobeScan, Shopping Choices Can Make a Positive Difference to Farmers and Workers in Developing Countries: Global Poll

Internet access:< http://www.globescan.com/news-and-analysis/press-releases/pressreleases-2011/94-press-releases-2011/145-high-trust-and-global-recognition-makes-fairtrade-an-enabler-of-ethical-consumer-choice.html>, (11 October 2011)

Kathryn Wheeler ‘CHANGE TODAY, CHOOSE FAIRTRADE’ Fairtrade Fortnight and the citizen-consumerInternet access: <http://oro.open.ac.uk/38741/9/Change%20Today%252C%20Choose%20Fairtrade%20revised2.pdf>, (July 2012)

Environews Spheres of Influence, Certified Coffee. Does the Premium Pay Off? (September 2007)

From a journal:

Unknown (2007). Certified Coffee. Does the Premium Pay Off? // Environews Spheres of Influence, Fall.

Others:

http://www.european-fair-trade-association.org/efta/index.php

http://www.fairtrade.net/about-fairtrade/history-of-fairtrade.html

http://www.fairtrade.org.uk/en

 

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