Question

Using the resources describing conscious capitalism and fair trade, how does fair trade support the philosophy and practices of conscious capitalism? What are the challenges to implementation of fair trade in the developing world?

Answer 1

Answer:

Conscious capitalism is a business mindset that has the goal of reconciling the profit motive of capitalism with social responsability. According to conscious capitalism, businesses should seek profits while at the same time benefiting society and the enviroment.

Fair trade is a form of trade that promotes the benefit of developing countries. Promoters of fair trade believe that exporters from developing countries should be paid more for their products, especially small exporters or business owners.

Fair trade is coherent with the principles of conscious capitalism because it promotes a profit-generating form of trade that can benefit both traders in the developed world and developing world.

There are many challenges to implementation of fair trade in developing countries. For starters, many developing countries are dictatorships or are very unsafe, and people are oppressed and have very little access to information and lack protection of their property rights.

In more functional developing countries, implementing fair trade has the typical difficulties of any less advanced nation: lack of information, lack of human and physical capital, among others.