SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Economics A Level

» Start this Course
(Practice similar questions for free)
Question:

Why are Fair Trade Schemes Beneficially and Costly?

Author: go kys



Answer:

-They can allow Long Term Planning to be Easier for Producers, as it Removes the Large Fluctuations in Price that is often seen in Primary Products -But Distorting the Market Price may lead to Overproduction. Farmers may fail to Recognise that Low Prices are a Signal for them to Grow a Different Crop. When Prices are Low, Farmers may Flood the Market and Drive the Price down Further, negatively affecting Farmers who aren't on the Fair Trade Scheme


0 / 5  (0 ratings)

1 answer(s) in total

Author

go kys
go kys