Final answer:
Fair trade does not perpetuate the cycle of poverty in developing nations. It aims to address economic inequality by ensuring fair wages and better working conditions. Fair trade organizations establish direct relationships with producers, providing them access to international markets.
Step-by-step explanation:
Fair trade does not perpetuate the cycle of poverty in developing nations. In fact, it aims to address the economic inequality by ensuring fair wages and better working conditions for producers in those countries. Fair trade organizations work to establish direct relationships with producers, eliminate intermediaries, and provide them with access to international markets.
This helps to empower local communities and reduce their dependence on exploitative practices. By paying a fair price for their products, fair trade provides an opportunity for producers to improve their livelihoods and invest in education, healthcare, and other essential needs.
For example, fair trade coffee ensures that coffee farmers receive a fair share of the profits, enabling them to support their families and invest in sustainable farming practices. While fair trade may not solve all the challenges faced by developing nations, it contributes positively to their economic development and poverty alleviation efforts.