DOI: https://doi.org/10.18371/fcaptp.v3i26.143995

PECULIARITIES OF FAIR TRADE: PROSPECTS, ADVANTAGES AND DISADVANTAGES IN THE WORLD AND UKRAINE

D. V. Smolych, N. С. Kutsai, O. M. Zavadskaya

Abstract


Introduction. In the current economic conditions in the world, trade relations are often accompanied by situation when the farmers and workers at the beginning of the production chain receive meagre pay for their work and/or do not get other advantages for trade, which indicates the existence of unfair trade in the world. Especially prevalent this situation is in the countries that are developing. Fair trade aims to change the situation by establishing a partnership between producers and consumers, in which the conditions of fair trade provide producers a better deal and improved terms of trade that gives them the opportunity to affect positively the level of their life and plan for the future. While consumers in the fair trade helps to reduce poverty in the world through their daily purchase of accordingly marked products. Purpose. The aim of the study concerning given above arguments that present issues of international trade, is the analysis of the characteristics, principles, advantages and disadvantages of fair trade and its development prospects in the world and Ukraine in particular. Methods. The following methods were used in the study: logical generalization, synthesis, analysis, comparison — to define the essential characteristics of the concept of «fair trade» and during the study of the principles of fair trade; analysis and comparison to identify the advantages and disadvantages of the fair trade movement. Economics and statistics were used for processing of statistical data of the state of fair trade in the world at present. Results. The study of the nature of «fair trade» is presented.  The basic principles of fair trade movement and the proposed addition to the existing system of principles are given. The standards of fair trade and their importance are analysed. The advantages and possible threats of «fair trade» are learned. Realism and positivity of this alternative to a traditional approach of trade for farmers and producers in developing countries are proved. There are  given types of businesses engaged in fair trade. The prospects and directions of development of this movement in Ukraine concerning the specialization of regions are diagnosed. Conclusions. The study showed the essence, the main determinants of the success and trends of development of fair trade movement in the world. These trends should be considered when identifying potential opportunities and directions the revitalization of fair trade in Ukraine, concerning the specialization of regions.


Keywords


fair trade; Fairtrade social movement; principles of fair trade; Fairtrade standards; Fairtrade Marks.

References


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GOST Style Citations


De Carlo J. Fair Trade: A Beginner’s Guide / J. De Carlo. —Oxford: Oneworld, 2007. — 176 р.

Stiglitz J. Fair Trade for All: How Trade Can Promote Development / J. Stiglitz and A. Charlton. —Oxford:OxfordUniversityPress, 2007. — 316 р.

Ransom D. Fair trade / D. Ransom. — Brno : Doplnĕk, 2011. — 138 р.

Ransom D. The no-nonsense guide to Fair trade / D. Ransom. —London : New Internationalist, 2006. — 142 р.

Litvinoff M. 50 reasons to buy Fair trade / M. Litvinoff, J. Madeley. —London: Pluto press, 2007. — 256 р.

Miller D. A. Fair Trade / Debra A. Miller.— Detroit : Greenhaven Press, 2010. — 202 р.

Lamb H. Fighting the banana wars and other Fairtrade battles / H. Lamb. —UK: Random House, 2009. — 256 р.

Bowess. The Fair Trade Revolution / J. Bowes. — London : Pluto press, 2011. — 288 р.

Brown K. Buying into Fair Trade: Culture, Morality, and Consumption / К. Brown. — New York : NYU Press, 2013. — 199 р.

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Copyright (c) 2018 D. V. Smolych, N. С. Kutsai, O. M. Zavadskaya

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770