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There is no doubt that the approaches to economical development that are used in our world are constantly changing, and these tendencies are reflected in new initiatives and programs that are being implemented in many countries. One of the most important processes that take place nowadays is globalization that is often referred to as an effective way to solve some of the most urgent problems of our society. Globalization is integration between different countries that allows them to share ideas, cultural assumptions and propel economic cooperation to the next level. Speaking about the modern world and the particular changes that take place, it is necessary to say that the process of globalization in many countries including the Gulf countries is represented by a lot of tendencies such as the introduction of a fair trade system that is supposed to be especially helpful for companies in poorer countries producing important goods.
Fairtrade is an important and unique example of globalization as this social movement is aimed at protecting workers and producers in the countries that are in a bad economical situation. The commodities produced to support the program are labeled to help the customers to distinguish the products that have been created about the principles of fair trade. As for the reasons why I have decided to write about this particular example of globalization, it needs to be said that this movement supports a really good and fair idea. Due to their concerted efforts, different countries such as the United Arab Emirates, Bahrain, and Kuwait that support the principles of fair trade can both help other countries and strengthen their own social and economical development. Among other things, United Arab Emirates collaborates with foreign producers and distributors to contribute to promoting the internationalization of organic products supporting the principles of fair trade (“International exhibition”, 2015). In general, a lot of companies represented in the Gulf countries are working by these principles, and fair trade can be regarded as a movement that produces important results and helps to protect workers in developing countries.
A lot of companies including Starbucks working in the Gulf countries collaborate with the World Fair Trade Organization (“Proud to support Fairtrade”, 2013). There are a lot of benefits of the fair trade system for the countries and the particular companies that are ready to apply these principles and protect fair standards for producers and distributors. The existing benefits are connected both to economic and political globalization. To begin with, the movement is important for the countries because there is a minimum price for the majority of products that helps to cover the costs of production even when the prices are falling sharply all over the world. Furthermore, the companies that become the members of the discussed organization have an opportunity to significantly increase the quality of lives of their workers. The producers who collaborate with World Fair Trade Organizations get substantial financial benefits and they have an opportunity to spend the money in the most effective way that will allow them to boost labor productivity and improve the quality of the products (Dragusanu, Giovannucci, & Nunn, 2014).
Thus, the money can be spent on personnel development, maintaining insurance for workers, and creating a safer working environment. To continue, an important reason to collaborate with the organization is connected to its willingness to protect the rights of agriculturists and workers whose contribution to production and development cannot be overstated. If the groups and their administrators meet the requirements stated by the organization, they can become their members and obtain their assistance to increase productivity and improve the quality of the products. It is also important to say that fair trade is supported by the representatives of many countries and it helps the companies that collaborate with the organization and implement fair trade policies to attract more customers (Hainmueller, Hiscox, & Sequeira, 2015).
For instance, Aal Mir, one of the most famous chocolate producers in the region implements the discussed policy and it has helped it to increase income and gain more trust of the customers and other companies. As for this type of product, it has been proved that fair trade policy implementation helps to increase the income (Rousseau, 2015). Nevertheless, not all the opinions concerning fair trade movement and its impact are as positive, there are also certain conflicts connected to it. For instance, not all the specialists agree that the consumers are ready to buy these products at higher prices; furthermore, there are the opinions that the policy encourages the companies to produce more products and it can lead to exceeding the demand that causes a reduction of prices (Rios, Finkelstein, & Landa, 2015). Anyway, the negative effects of fair trade policy implementation in the UAE and all over the world have not been proved.
In the end, many tendencies manifest globalization in the Gulf countries, and the fair trade movement remains one of them. Many companies implementing fair trade policy work in this region and it helps them to improve the quality of goods and gain the trust of the customers. Furthermore, the policy allows to protect workers and establish links between countries, and this is why it is supported by many companies. Nevertheless, there is also a criticism of the movement connected to the danger of exceeding the demand. I consider fair trade policy as an important initiative because of its primary goal.
Dragusanu, R., Giovannucci, D., & Nunn, N. (2014). The economics of fair trade. The Journal of Economic Perspectives, 28(3), 217-236.
Hainmueller, J., Hiscox, M. J., & Sequeira, S. (2015). Consumer demand for fair trade: Evidence from a multistore field experiment. Review of Economics and Statistics, 97(2), 242-256.
Proud to support Fairtrade. (2013). Web.
Rios, K., Finkelstein, S. R., & Landa, J. (2015). Is there a “fair” in fair-trade? Social dominance orientation influences perceptions of and preferences for fair-trade products. Journal of Business Ethics, 130(1), 171-180.
Rousseau, S. (2015). The role of organic and fair trade labels when choosing chocolate. Food Quality and Preference, 44(1), 92-100.