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Fair Trade Investing

Written By
Paul Tracy
Updated January 16, 2021

What is Fair Trade Investing?

Fair trade investing is an investment strategy whereby the investor only buys and sells companies that promote fair trade with suppliers in developing nations.

How Does Fair Trade Investing Work?

For example, if John Doe wanted to adopt a fair trade investing strategy, he would only purchase the securities of companies that, say, have strong environmental practices, pay living wages to workers in developing countries, and promote equal pay for suppliers.

Why Does Fair Trade Investing Matter?

Fair trade investing involves knowing a lot about agricultural products and processes in third-world countries. The investing approach is popular among investors who wish to help workers who have lower standards of living, fewer government subsidies, and high environmental concerns.
 

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