Fair Trade Investing

A A A

DEFINITION

Investing in companies or projects that promote fair trade with producers in developing nations. Basic fair trade philosophies call for equal pay for suppliers of raw goods and materials as well as respect for strong environmental practices and a focus on the trading relationships between advanced economies and developing nations.




INVESTOPEDIA EXPLAINS

Fair trade investing mainly deals with trade in agricultural products, such as coffee, sugar and textiles. Many of the growers of these products are low-income workers who are often marginalized in trade agreements and receive few subsidies from their home governments. Fair trade practices aim to help these workers gain a higher standard of living and financial independence, while the companies who actively promote fair trade can show transparency in their business dealings and gain valuable image points with shareholders.





RELATED TERMS
  1. Capital Markets

    Markets for buying and selling equity and debt instruments. . Organizations/institutions ...
  2. Barter

    The act of trading goods and services between two or more parties without the ...
  3. Triple Bottom Line

    A phrase coined in 1994 by John Elkington and later used in his 1997 book "Cannibals ...
  4. Fair Trade Price

    A minimum price paid for certain agricultural products imported from developing ...
  5. Emerging Market Fund

    A mutual fund or exchange-traded fund that invests the majority of its assets ...
  6. World Trade Organization - WTO

    An international organization dealing with the global rules of trade between ...
  7. Socially Responsible Investment ...

    An investment that is considered socially responsible because of the nature ...
  8. National Treatment

    A concept of international law that declares if a state provides certain rights ...
  9. Green Economics

    A methodology of economics that supports the harmonious interaction between ...
  10. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned ...
Related Articles
  1. Broadening Your Portfolio's Borders
    Investing Basics

    Broadening Your Portfolio's Borders

  2. Social Finance Careers: Creating A Better ...
    Entrepreneurship

    Social Finance Careers: Creating A Better ...

  3. The History Of Money: From Barter To ...
    Forex Education

    The History Of Money: From Barter To ...

  4. Working With Islamic Finance
    Retirement

    Working With Islamic Finance

  5. Understanding Leveraged Buyouts
    Fundamental Analysis

    Understanding Leveraged Buyouts

  6. How The Sarbanes-Oxley Era Affected ...
    Fundamental Analysis

    How The Sarbanes-Oxley Era Affected ...

  7. Where's The Market Headed Now?
    Fundamental Analysis

    Where's The Market Headed Now?

  8. Does Higher Risk Really Lead To Higher ...
    Active Trading

    Does Higher Risk Really Lead To Higher ...

  9. Invest Like Madoff - Without The Jail ...
    Options & Futures

    Invest Like Madoff - Without The Jail ...

  10. 5 Economic Changes That Fatten Your ...
    Active Trading

    5 Economic Changes That Fatten Your ...

comments powered by Disqus
Hot Definitions
  1. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  2. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  3. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  4. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  5. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  6. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
Trading Center