Buying stock in a multinational corporation building a manufacturing plant in a poor country would help its workers more than fair trade premiums, because the capital-intensive enterprise raises the marginal product and wages of factory workers, and as people leave coffee plantations for factories, coffee workers' wages get bid up too.

causalpending

Speaker

Mike Munger

Evidence Quote

that's bound to be more helpful to workers in that country then keeping them as coffee slaves

Source

Mike Munger on Fair Trade and Free Trade 12/3/2007EconTalk
Created: 6/17/2026, 10:31:24 AM

My Notes

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