Fair Trade, Clothing, and Market Externalites

Market externalities, or hidden costs that get passed on to the producers (farm and factory workers) so that business owners can enjoy high profits and consumers can have cheap products, are becoming more and more important to consumers.  The Fai Trade movement addresses some of these concerns in terms of food, and now, clothing is becoming scrutinized after the tragic Bangladesh factory collapse that kills 800 workers.

 

 

From the New York Times, 5/8/13:

 

 http://www.nytimes.com/2013/05/09/business/global/fair-trade-movement-extends-to-clothing.html?emc=eta1&_r=1&

Some Retailers Say More About Their Clothing’s Origins