A fund has invested in a Fair Trade organic-certified coffee cooperative located in Ecuador.The trade finance loan allowed the cooperative to cover operating costs and invest in new processing equipment.Additional revenue gained from Fair Trade coffee sales are used to sponsor projects in reforestation, education, and community-based health clinics in the community where small-holder farmers live.This is an example of ______.

Question

Quizplus · Accepted Answer

This is an example of sustainable trade financing where the loan provided helps the cooperative cover operating costs and invest in new equipment, while the additional revenue gained from Fair Trade coffee sales is used to fund community development projects. The focus is on promoting sustainable practices and improving social and economic well-being in the community.

A Fund Has Invested in a Fair Trade Organic-Certified Coffee