Linh Good morning. My name is Linh. And next to me is my partner, Ly. We’re from group 2.

Today, we are going to be presenting the topic: TRADE.

we’ll start off by giving you handout of new words related to this topic so that you can have a

better understanding.

And then we’ll go on to bring you up-to-date on background knowledge of fair trade, based on

reading: UK develops taste for fair trade on page 79 market leader course book.

Ly Finally, we will do a toeic listening small test.

If you have any questions, free to ask and we are willing to answer them.Linh Ok now, let’s take some times to look through newwords. We have supply the full information of

the vocabulary, including pronunciation, meaning, and examples. You may see a strange word:

laisserz-faire. The term is a french phrase literally meaning “let do” or “leave it to be”. The

general meaning of laisserz-faire is to allow to take their own course, or to let people do what they

choose. To summarize, the term is refered to minimize or eliminate government intevention in

most or all aspects of society.

ly About the term:”fair trade” .

Fair trade is a type of trade policy that allows traders to act and transact without interference

from government. Under a free trade policy, prices are a reflections of true supply and demand.

Government interventions include subsidies, taxes and tariffs, non-tariff barriers, such as

regulatory legislation and quotas . This leads to artificial prices that do not reflect the principles of

supply and demand.linh Let’s come to second part of our presentation as also the main one. The whole reading ís

covered with the term “ fair trade”. I’m sure some of you may confuse fair trade and free trade. So

i’m going to clarify the meaning of two words by give you an example help distinguish them.

In Free trade, the producers (farmers, small business owners, manufacturers, etc.) who harvested

the coffee beans sell them without the interference of the government's tax or monetary gifts -

tariffs, subsidies, price controls politics.

However, Free trade leaves producers in developing countries at a disadvantage. In those

countries, producers lack social security and other safety nets that would help them hold out on

selling products during times when prices are low. While producers in more prosperous nations

can wait to sell at times like these.

Meanwhile, Fair trade means that there are some rules in trade providing for producers who

have disadvantages in a free market. If you buy a fair trade cup of coffee, it means that the farmer

who harvested the beans in a developing nation had some help getting his specific product to you.

Fair trade aims to help producers in developing countries obtain better trading conditions and

gives an extra boost to those producers who promote sustainability (like eco-friendly agriculture).

The Opponents of fair trade say that any solution that benefit one group over another will affect

growth overall.

Those are differrences between two definitions.

Ok, now we ar going to summarize the main content of the reading in market leader book.

ly At the beginning, The author stated hard situation famers are facing that their products can not

break into the world market, especially strict markets like EU, US. But later, he pointed out the

solution for these farmers that protects them from depressed world commodity and the price wars

between giant multinationals by selling products to the “fair trade” market.

linh It is a controversal matter.

For The supporters, fair trade is an example of how world trade can and should be run to tackle

poverty. As We showed you in the previous example about fair trade, producers will get an added

premium, which can save a farmer from bankruptcy or mean a family has the money to send their

children to school due to price differrence.

ly We can see that fair trade has produced a chain of advantanges for both farmers and supporters

and at the end of this chain, the first-world consummer only pays a small sum to get any food they

want. Fair-trade food is booming, fair trade food sales are growing by more than 25% a year

internationally, the farmers are benefiting in the world’s poorest countries, earning more and more

money to producers. As a result, demand for unlabelled non-food goods are also increasing such

as handicrafts and textiles.

However, while fair trade with its explosion, designed to reduce injustices of the world trade

system, could become a victim of WTO- free trade, be banned because of the WTO rules. This is

very strange.

Meanwhile, fair trade shows that social and enviromental standards can be incorporated into trade,

not charity.

That’s all covering our reading on topic: Trade. We hope some newwords and information we has

given today, will be useful to you.

And the third section, we will do a small toeic test.. let’s get started.