Trade Globalization And International Investment Law

Register to read the introduction… For example, according to the Office of the U.S. Trade Representative, from 1994 to 2000 increased exports accounted for approximately one-fifth of U.S. economic growth, and nearly one-third of U.S. growth between 1992 and 1997 (U.S. Trade Representative “America and the World Trade Organization,” 2000) For the decade ending in 1999, the organization for Economic Co-operation and Development (OECD) reports that “more pen” countries achieved double the annual average growth of other countries. (OECD Observer Policy Brief, October 1999, p. 2.) Even developing countries have benefited from greater international trade and investment. As the Council of Economic Advisers reported in 1999: “Data from 1974-1985 and 1986-1992 show developing countries with inward-oriented economic policies experiencing less annual growth of GDP [gross domestic product] per capita than those with outward-oriented economic policies. (World Trade Organization: An Economic Assessment, November 16, 1999) Greater international trade and investment have also had a positive effect on income. One study of how international trade affects standards of living found: “The relation between the geographic component of trade and income suggests that a rise of one percentage point in the ratio of trade to GDP increases income per person by at least one-half percent. (Jeffrey A.F. and Romer D June 1999, p. 394) (The “geographic component” tends to reflect the natural variations in trade, as opposed to trade variations induced by, say, government policies, therefore establishing a more direct relationship between trade and income.) The Council of Economic Advisers likewise reported in 1998 the results of a study of data from 123 countries between 1960 and 1985. The study “estimated that every percentage-point increase in openness,” where the yardstick for measuring “openness” was imports plus exports as a percentage of a country’s GDP, “was associated with a 0.34-percent increase” in per capita real income. The positive effect that international trade and investment can have on income appears to be independent of income distribution. A study by economists at the World Bank examined income data from 80 countries covering four decades. It found in income data for the poor and per capita income that the poor benefited from “trade openness” the same as the average household—a result that has far-reaching policy implications. (World Bank [working paper], March 2000) [pic] Increase in FDI Inflows – 1982 US $ 59Bn – US $ 1036Bn 2006, Growing Importance of FDI in the developing countries is evident, although …show more content…
These help promote and increase the volume of investment and impact the global economic growth.
The Exports, Free retail zones and warehouse services and logistic support are kind of activities that are creating more value and more jobs.

Cross-Border M&A’s by TNC’s From Developing and Transition economies by origin of purchaser, 1987 - 2005
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4. Foreign investment in the global economy
As studies from the (OECD, Council of Economic Advisers, World Bank) and other government institutions and individual economists have shown, scores of countries around the world have achieved higher economic growth and incomes by adopting international economic policies that promote greater trade and investment. Many of the studies demonstrate that greater international trade and investment is correlated or associated with higher economic growth and income; it is also important to demonstrate various ways greater international trade and investment can cause them to …show more content…
FDI from Developing and Transition Economies: Implications for Development) http://www.china.org.cn/international/weekly_review/2008-06/07/content_15790132_2.htmhttp://www.timesonline.co.uk http://web.worldbank.org

U.S. Trade Representative, “U.S. Membership in the WTO: Supporting American Workers, Farmers, Businesses, Economic Progress and Security,” April 12, 2000, p. 1 and “America and the World Trade Organization,” p. 10“.)

(OECD Observer, “Open Markets Matter: The Benefits of Trade and Investment Liberalisation,” Policy Brief, October 1999, p. 2.)
(Council of Economic Advisers, “America’s Interest in the World Trade Organization: An Economic Assessment,” November 16, 1999, p. 29.)

Jeffrey A. Frankel and David Romer, “Does Trade Cause Growth?” The American Economic Review, June 1999, p. 394)

(David Dollar and Aart Kraay, “Growth Is Good for the Poor,” World Bank [working paper], March 2000, pp. 1-2, 22-23, 27) (Source: Friedman, Milton, Capitalism and Freedom, University of Chicago Press, Chicago, 1962, p.)
Source: National Statistics 2006)

(Source: Emphasis added to Cobden's quotation of the petition, in a free-trade speech delivered in 1846 “Free Trade With All Nations.”)