Question

Developing nations have formed international commodity agreements (ICAs) between leading producing and consuming nations of commodities. To promote stability in commodity markets, ICAs have relied on production and export controls, buffer stocks, and multilateral contracts. For example, the fair trade system may help to _______ (increase the number of middlemen selling farmer's products/ increase the income of farmers in developing nations/ decrease the markup price that retailers charge on farmer's products).

Answer 1

Answer: increase the income of farmers in developing nations.

Explanation:

Due to having weaker currencies, a lower standard of living and supplying raw materials, the farmers in developing nations are not paid a lot and so have to produce a significant amount of produce in order to get paid better.

International Commodity Agreements (ICAs), recognize that this is exploitative towards these farmers and so is working to increase the income that these farmers get in line with the fair trade system.