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…

View original post 145 more words

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.