What term refers to a pre-set minimum price that must be paid for goods produced as fair trade?

CIPS Managing Ethical Procurement and Supply Test is designed to enhance your understanding of ethical practices in procurement. Study with comprehensive questions and explanations. Prepare effectively for your exam!

The term that refers to a pre-set minimum price that must be paid for goods produced as fair trade is "Fair Trade Pricing." This concept is fundamental to the fair trade movement as it ensures that producers, especially in developing countries, receive a price that covers their costs of production and provides a livelihood.

Fair Trade Pricing aims to combat the exploitation of producers by guaranteeing that they earn a living wage, enabling them to invest in their communities and sustainable practices. It promotes transparency and fairness in the supply chain, allowing consumers to make ethical purchasing decisions.

The other terms mentioned, such as Minimum Pricing, Base Price Regulation, and Price Floor, can relate to pricing strategies more broadly but do not specifically capture the essence of fair trade principles like Fair Trade Pricing does. These other terms may address elements of economic interventions or price-setting in various markets, but they lack the targeted focus on ethical standards and social impact that Fair Trade Pricing embodies.

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