Question

From the podcast “Fair Trade”, according to Amrita Narlikar, what is one of the macro level consequences of fair trade?

Select one: a. The fair trade movement has increased attention on the long term solution to fair trade issues

b. The fair trade movement has increased the demand for money in developed countries which has moderately increased price levels

c. The fair trade movement has benefited non-fair trade farmers

d. The fair trade movement runs the risk of fragmenting the world market on agriculture and depressing the wages of the non-fair trade farmer

Answer 1

D. The fair trade movement runs the risk of fragmenting the world market on agriculture and depressing the wages of the non-fair trade farmer

Macro.level consequences were:

1. Fair Trade deflects attention from the real long-term solution, which is free trade.

2. Fair Trade movement runs the risk of fragmenting the world market on agriculture and depressing the wages of the non-Fair-Trade farmer.

The non-Fair-Trade farmer, non-Fair-Trade products are neglected in this scenario.