Here is the synopsis of our sample research paper on Foreign Trade, Investment, and Increasing Inequality
. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 3 page paper discusses the question of why increased trade and investment have increased inequality in most of the countries of the world. Bibliography lists 1 source.
Page Count:
3 pages (~225 words per page)
File: D0_HVTraIne.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
This paper explores why, in many countries, foreign trade and investment lead to increasing inequality. Discussion The first thing we read in connection with this issue is that for
many countries, globalization "has resulted ... in an increase in wage and income inequality" (van der Hoeven, 2000). Van der Hoeven writes that theory "on income inequality and adjustment and
globalization often points to declining inequality as adjustment and trade liberalization will favour the production of goods by the production factor in which a country has comparative advantage" (van der
Hoeven, 2000). However, this theory that competitive advantage results in less inequality is apparently unsupported by evidence: in the 1980s when most countries "underwent structural adjustment programmes, wage dispersion increased
with falling real wages" (van der Hoeven, 2000). The World Bank says that information about what is really happening with wages around the world, particularly in developing countries, is "sparse
and mixed" (van der Hoeven, 2000). The increasing openness in many world societies doesnt automatically translate to equality in wages and opportunity, though it does make a difference in
countries with a large pool of unskilled labor: "Evidence from East Asia supports the view that greater openness in countries with an abundance of unskilled labour benefits this type of
labour," but even here the "picture of relative wages is more complex, reflecting the interplay of the increase in relative demand for unskilled labour and the supply of skilled labour"
(van der Hoeven, 2000). There appears to be no predicting what policy changes and increasing openness will do to the economy, particularly in developing countries. In Africa, greater openness
can be associated with a increase in equality, as well as "recovery in growth and some reduction in poverty" (van der Hoeven, 2000). But in other parts of the world
...