Acoffee grower in chile earns the market price for his coffee beans. what is this an example of?
a. fair trade
b. price floor
c. free trade
d. price ceiling

The correct answer is A. If a coffee grower in Chile earns the market price for his coffee beans, this would be an example of fair trade.

Explanation:

Fair trade is an alternative form of trade promoted by several NGOs (non-governmental organizations), by the United Nations Organization and by social and political movements (such as pacifism and environmentalism) that promote a voluntary and fair trade relationship between producers and consumers.

It is an initiative to create innovative commercial channels, within which the relationship between the parties is aimed at achieving sustainable supply development. Fair trade is oriented towards integral development, with economic, social and environmental sustainability, respecting the idiosyncrasies of peoples, their cultures, their traditions and basic human rights. Fair trade can be considered a humanistic version of free trade, which like this is voluntary between two parties, and would not take place if both parties did not believe that they would benefit.

Fair trade has received criticism for translating into a final price more expensive than traditional products and for demanding complex organizational systems from producers, which often do not correspond to the original production system and the traditions of local farmers.

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