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Africa is a classic case in point : its increasing marginalization within the world economy reflects , as pointed out in chapter 2 , the paucity of inward foreign direct investment and exports of secondary or tertiary output . In light of recent political reforms freeing Lebanon from Syrian control and reintroducing an accountable , transparent , democratic government , can a Lebanon marked by bribery ever succeed in inducing Foreign Direct Investments and establishing healthy international business liaisons ? Topics include the Environmental Kuznets Curve and Pollution Haven hypotheses , foreign direct investment and the environment , MEA-WTO conflicts , trade laws and fisheries subsidies , intellectual property rights and traditional knowledge , and related policy mechanisms . While trade liberalization has increased investment in Mexico , and foreign direct investment has nearly tripled , economic growth remains sluggish under one percent annually and real wages for most Mexican workers have dropped by 23 percent since NAFTA began , according to Wise and Gallagher . Finally , the President ’ s budget includes many directed investments and efficiencies to ensure the Department continues down the path of wise and effective financial management so that we maximize every dollar that is provided to us . It adds that promoting more competition in services and in other markets , along with a sounder more efficient financial sector , will improve the investment and business climate needed to attract Foreign Direct Investment and private sector development . However , capital account liberalization needed to be appropriately sequenced , starting with foreign direct investment and long-term capital flows . This paper considers the impact of international taxation on patterns of foreign direct investment and on the extent of international tax avoidance activity . The global economy is being driven by cross-border direct investments and cooperative business ventures on an unprecedented scale . The spending effect : The discovery of an important quantity of a natural resource is often associated with large foreign direct investments and , especially in a small open economy such as Canada ’ s , with large export revenues .