The Economics of Fair Trade

Objective of this paper is to demonstrate that the fair trade tends to diminish the inequalities between various countries using market trade. Developed countries don’t give help to developing countries. They instead use commercial trade to interact with producers in poor countries. In this case, the “invisible hand” is substituted by a social contract between the contenders that share them for the pursued values. The fair trade community can therefore be designed as an institution in favour of producing generally shared lifestyles. That can consequently represent a propelling force for the transformation of the economic global system, beginning from the bottom and exploiting material and immaterial resources, accumulated in the course of time from various territorial assets