Foreign Aid

Paper Summary:

In this document the writer discusses globalization and looks at its impact on poverty and economic development across emerging markets. The role of the World Trade Organization (WTO) within this dynamic is also examined as well as how the WTO and the global economy interact to encourage or develop greater levels of foreign direct investment (FDI) in order to spur economic development.

Outline:
Abstract
Overview
The World Trade Organization's Role in FDI
Conclusion

From the Paper:

"Thus, it can be seen that the discussion of poverty and its alleviation, especially reference to Mexico, or indeed any other emerging market, is really a discussion of how these economic structures are re-characterized in respect to the global economy. The intent is to assist these markets with their internal economic structures, without compromising national integrity, so as to result in a more universal elevation of quality of life standards across the spectrum of their societies.
"While many authors tend to immediately jump to the issue of poverty when discussing globalization and its impact, others are quick to note that globalization can be effective at alleviating poverty. Fenstra and Hanson pointed out that the outsourcing explosion brought about by NAFTA between the U.S., Mexico and Canada, resulted in positive economic growth in Mexico's border areas where foreign factories invested in factories to handle their inputs in the production of goods almost completely destined for export."

Sample of Sources Used:

• Bhagwati, Jagdish. (2004). In Defense of Globalization. Oxford University Press, New York.
• Cornia, Giovanni Andrea, ed. (2004). Inequality, Growth, and Poverty in an Era of Liberalization and Globalization. Oxford: Oxford University Press.
• Fenstra, R. & Hanson, G. (1997). Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras. Journal of International Economics, 42, p.371-393.
• Figini, P. & Santarelli, E. (2006). Openness, economic reforms, and poverty: Globalization in developing countries. The Journal of Developing Areas, 39/2, pp.1-23.
• Mendoza, R., & Bahadur, C. (2002). Toward free and fair trade: A global public good perspective. Challenge, 45(5), 21+.

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