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Removing local skills
Keeping artisans away from customers
Question 1HardLevel 12
Why is the voice of small artisans necessary in collective decisions in handicrafts?
Correct answer: A
Including small artisans ensures that their experience, needs, and concerns—such as raw-material costs, fair wages, and market access—are considered. Thus, collective decisions do not serve only large producers or influential members. Options B, C, and D reduce quality, transparency, or sales, so they are not purposes of collective decision-making. Exam tip: Link collective decision-making with equal participation and fair representation.
If a buyer repeatedly delays payment in handicrafts, what collective step is suitable?
Correct answer: A
When payments are repeatedly delayed, artisans or their group should set written payment terms, such as an advance, a fixed due date, and action for delay. Diversifying buyers reduces dependence on one buyer and protects cash flow. Continuing unrestricted credit increases risk, while removing records weakens proof of transactions. Exam tip: In collective marketing, written agreements and advance payments are key financial safeguards.
What effect can raw material monopoly have on artisans in handicrafts?
Correct answer: A
When one or a few suppliers control raw materials, artisans have fewer purchasing alternatives. Suppliers may then charge higher prices or impose unfavourable terms, raising production costs and dependence. Option B is the opposite: monopoly usually weakens an artisan’s bargaining power. Exam tip: link this issue with input-market risk and low bargaining power.
Why is pricing transparency beneficial for both customer and artisan in handicrafts?
Correct answer: A
Pricing transparency helps the customer understand how material, labour, skill and other costs contribute to the price. It builds trust and enables the artisan to justify a fair price for handmade work. Option B is incorrect because transparency allows customers to evaluate quality and price; it does not force them to accept any price. Exam tip: link transparent pricing with fair value, cost information and customer trust.
What is the correct meaning of social audit in handicrafts?
Correct answer: C
A social audit is a systematic and transparent review of how an activity affects people, especially those who work in it. In handicrafts, it can examine whether artisans receive fair payment, work in safe and decent conditions, understand agreements, and receive a fair share of profits or benefits. It is concerned with accountability and rights, not merely with the appearance of a product.
Therefore, option C is correct. Checking only colour or recording shop rent does not assess social fairness. Giving customers a false story is the opposite of transparency. A social audit can reveal unfair deductions, unsafe work, unequal benefit sharing, or hidden labour, helping organisations improve practices and respect artisan dignity.
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