Fair Trade in retailing refers to an agreement between manufacturers and retailers that ensures the manufacturer's product is sold at or above an agreed-upon price. Despite its historical significance, the practice was effectively eliminated by the Consumer Goods Pricing Act of 1975.
Pre-financing refers to an arrangement where a buyer, often an importer, finances the activities of a supplier by making an advance payment against future delivery. This practice is sometimes employed as a fair trade policy to support farmers in developing nations.
