“Shopping for Human Rights?”

Learning IntentionsIn this lesson you will learn….

1. What ‘trade’ is.

2. Why trade is a Human Rights issue.

3. The difference between Fair Trade and Free Trade.

4. The untold story behind many of the products you use….

Copy these Focus Questions into your books

1. Define ‘trade’ (leave a line)

2. The THREE reasons why trade can be a human rights issue are…(leave 4 lines)

3. Copy this table (you will need ½ a page)

FREE TRADE FAIR TRADE

DESCRIPTION

ADVANTAGES

DISADVANTAGES

What is trade?• Trade is the buying and selling of goods and services.

• It often involves buying a product from one country and selling it in another.

• For example….. iPods are made in China for Apple. Apple then sell iPods to Auckland consumers…

Trade can be a Human Rights issue because:

1. In some countries workers’ rights are not respected.

2. Poorer countries have not benefited from trade as much as wealthy countries.

3. Poverty in poorer countries can be made worse by unfair trade.

Three reasons why trade is a Human Rights issue: Reason One

In some countries workers’ rights are not respected.

Companies want to get their products made in countries where wages are low.

This keeps the cost of production down, makes the product more affordable to consumers and allows companies to make larger profits.

However…..

In some countries wages are low because the rights of workers are not protected.

The government may not enforce minimum wages, overtime pay or make companies pay attention to health and safety laws.

In 2006 an iPod factory in China was investigated. Many workers were working over 60

hours a week for around $30 a month. This picture shows the sleeping quarters.

Three reasons why trade is a Human Rights issue: Reason Two

Poorer countries do not appear to be benefiting from trade as much as wealthy nations.

• Many of the products traded globally are made in poorer parts of the world (such as Africa or South America).

• Products like coffee, cocoa, diamonds and even some metals found in your cell phone all come from poorer countries.

• Critics of global trade believe that poorer countries are not being paid the true value of these products.

The bigger the country, the wealthier it is….

Africa in 2015

Three reasons why trade is a Human Rights issue: Reason Three

The people of poorer nations do not have much bargaining power.

• Companies from wealthy nations can afford to shop around for the cheapest supplier.

• Farmers and workers in poor nations have no bargaining power and have to accept the offers that come their way.

• This may make escaping the ‘poverty trap’ more difficult.

Two models of trade: Free VS Fair

Free Trade: Companies deal directly with the producers of goods. The main goal is to pay as little as possible for the product.

MONEY

COFFEE

Free TradeA company like Nestle might agree to buy coffee from a farmer

in Nicaragua. They will pay as little as possible and ‘shop around’ for the farmer who will accept the lowest price.

Free Trade

Advantages Disadvantages

• The price paid is usually as low as possible (good for companies and shoppers!)•It encourages producers to make their product as cheaply as possible.

• Producers have to accept a low price for their product.•This has meant that many farmers in poor countries have low living standards •Farmers may not earn enough to save and invest in better farming methods.•They may rely upon child labour to keep costs down

Two models of trade: Free VS Fair

FAIR Trade: 1. Producers are paid a ‘fair’

price for their product.

2. The price is higher than average and allows them to improve their standard of living and invest in their businesses.

Fair Trade

Advantages Disadvantages

• Producers earn enough to have a reasonable standard of living.•It may help prevent child labour because farmers can afford to educate their children.•Producers can afford to invest in their farms.

• Fair Trade goods are usually more expensive.•Not all stores carry Fair Trade products.

Fair Trade Shops in AucklandFair Trade chocolate is more

expensive but:

1. The cocoa farmers are paid a fair price for their product.

2. They do not need to rely upon child labour.

3. For the first time in several generations their children are receiving an education

Trade Aid stores in Auckland sell a range of products

(including coffee, tea and chocolate).

Shopping for Human Rights!

If we know more about the products we buy we can make informed decisions about:

1. Where we buy them from.

2. The questions we ask at shops “Excuse me – do you carry Fair Trade chocolate?”

3. How we behave when we are running businesses in the future…