International trade and access to markets (fairtrade and ethical investment) Flashcards
What is fairtrade?
Fairtrade is concerned with offering better prices, decent working conditions, local sustainability and fair terms of trade for farmers and workers in the developing world.
What is ethical investment?
Where investors make a deliberate choice to invest capital based on activities of the firm or organisation they are investing in. - this is seen as a socially responsible choice since most decisions are based on environmental or social concerns.
What is the main goal of free trade?
Increase economic growth
What is the main goal of fair trade?
To empower marginalised people.
What does free trade focus on?
Trade policies between countries
What does fairtrade focus on?
Trade amongst individuals
Who does free trade primarily benefit?
Multi-national corporations
Who does fair trade primarily benefit?
Vulnerable farmers in LICs
What are the major actions associated with free trade?
- Countries lower tariffs
- Labour and environmental standards are set
What are the major actions associated with fair trade?
- Long - term relationships through direct trade
- Higher labour and environmental standards
What are key advocate organisations for free trade?
WTO, World Bank, IMF
What are key advocate organisations for fair trade?
World Fair Trade organisation
