DOES FDI PROMOTE PEACE? A Relationship Between Foreign Direct Investment (FDI) and Global Peace

Abstract

Peace is a superlative form of pleasant and harmonious atmosphere, cause happiness all over the globe. Global peace is chimerical plans of terrestrial non-violence through nations enthusiastically cooperate by means of voluntarily or by virtue of a system of governance which prevents conflict between nations.

Nowadays some new thesis and theories regarding promotion of global peace are on-going in the world. Not only world trade being dependent on global peace, previously, global peace and concord may be influenced and brought nearer to reality through escalating world trade unlike in the past theories where trade was a function of global peace. In this study we discuss that can peace may be the function of trade, can it be used to exterminate terrorism and develop harmony among nations. In this article, we concentrate and evaluate various studies on this issue. It is common understanding that global trade thrives well during peacetime but here we argue that global peace prosper well during enhanced global trade. We should also recognize the important role that trade and foreign direct investment (FDI) engage as a main catalyst in fabricating and procuring peace. International trade brings entities and individuals together by means of motivation and business. This interaction provides not only, mutual gain allied with business relationships but also promotes relationships and mutual understandings. Global peace and prosperity based on these foundations. In this modern age most theologists believe that "trade naturally promotes peace," In contrast, a number of economists and political scientists strongly advocate the concept that “trade leads to peace”. This article develops a critical framework concluding that higher gains from trade among two trading nations suppress the level of conflict between them.

Keywords: International trade, Foreign Direct Investment, Conflict and Global peace