Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Fair Trade Investing

What it is:

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 it works (Example):

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 it Matters:

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.