IP5- Relations in trade Essay Example | Topics and Well Written Essays - 1250 words

IP5- Relations in trade - Essay Example Through these policies, the actual people behind businesses and the production of market prodcuts have a sense of need for their efforts. They do not feel cheated and they feel the essence of their contribution to society. Two of such policies are fair trade and free trade. In the contest of Content Cow Dairy, this write-up seeks to delve into the meaning of these two terms; fair trade and free trade by drawing the distinction between them. It also seeks to identify how fair trade is achieved and run. What is more, the write-up seeks to explore some of the preferred corporate management strategies that would work best for Content Cow Dairy. Finally the write-up would identify problems faced by the organisation’s foreign affiliates and success ways of remeding the situation. Fairtrade and Free Trade – the Similarities and Differences Fairtrade and free trade are commercial policies that are directed towards the betterment of producers of market produce and their trading counterparts. Accordong to the Fairtrade Foundation (2011), fairtrade is a policy that requires â€Å"companies to pay sustainable prices (which must never fall lower than the market price).† The idea and need for starting fairtrade was born out of giving a fair deal to producers. â€Å"A fair deal includes a fair price for goods and services, decent working conditions, and a commitment from buyers so that there is reasonable security for the producers† (Tribes & Fair Trade Travel, 2009). This is to say that fairtrade is generally focused towards ensuring that prodcuers of market produce are not cheated – as far as the sale and purchase of their produce are concerned. Writing on freetrade however, the Greenpeace International (2011) observes that â€Å"the act of opening up economies is known as "free trade" or "trade liberalisation."† Simply put, free trade is about businesses and companies having the opportunity to trading and opening up new branches in other coutries without much restrictions. Similarly, both free trade and fairtrade are concerned with the betterment of people who put their efforts in doing business. However there is some level of difference in the sense that whereas fairtrade targets the producer and makes sure that the producer gets what he or she deserves, free trade focuses on the marketer (perhaps the one who buys from the producer) to ensure that the marketer is not limited in his or her attempt to trade off his or her products. Fairly traded Products and Reasons for their Selection The initiative of fairtrade was of course focused on specific products and not all other products. In the United Kingdom alone, The Fairtrade Foundation (2011) argues that â€Å"The Fairtrade Foundation has licensed over 3,000 Fairtrade certified products for sale through retail and catering outlets.† These 3,000 products have been categorised into components with each having minor set of products under it. These major pr oducts are listed under food and non-food products. Under the food products, the products include; Bananas, Cocoa, Coffee, Dried Fruit, Fresh Fruit & Fresh Vegetables, Honey, Juices, Nuts/Oil Seeds/Oil, Quinoa, Rice, Spices, Sugar, Tea and Wine (Fairtrade Foundatio