The Difference Between Free Trade & Fair Trade

Fair Trade World

Free Trade Vs. Fair Trade – Not The Same!

Many people confuse the terms “Free Trade”, which has played a major role in countries’ trade policies in the past few decades, with “Fair Trade“. The table below will help clarify the key differences between the two terms.
Free TradeFair Trade
Main goal:To increase nations’ economic growthTo empower marginalized people and improve the quality of their lives
Strategy:Profit is the overriding concernBalances concerns for people, the planet, and profit
Primarily   benefits:Multinational corporations, powerful business interestsVulnerable farmers, artisans and workers in less industrialized countries
Critics say:Punishing to marginalized people & the environment, sacrifices long-term relationshipsInterferes with free market, inefficient, too small-scale for impact
Financing:Payment is received at time of shipment; credit is sometimes extended by informal lenders at exorbitant rates.Businesses offer producers advance credit with low- or zero-interest…

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Published by orendaworld

Helping you help them. Orenda is a blog geared towards promotting Social Entrepreneurial companies (Buy One, Give One, charitable, fair trade, and locally grown companies), trying to make a difference in the world. "Orenda" is an Iroquoian power by which human accomplishment is attained. We want to give people the Orenda to overcome their hard times, or just to give them that push to accomplish great things. We also want Orenda to push buyers to accomplish some change in the world and overcome all of the problems our world faces today.

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