In this chapter, areas of influence in international trade will be explored in relation to their ability to bring progress to developing countries. The literature and sources explored aim to uncover their strengths and weaknesses, grounding the research in a well-developed context and also revealing areas that will fuel further research and analysis. 2.1 Globalization and free trade Globalization has the potential to alleviate those held captive by poverty and it is commonly accepted that it should aim to provide ubiquitous prosperity and economic development alongside sustainability and cultural diversity (Tiemstra, 2007). Globalization is seen as a shift in economic activity towards further international integration and interdependence, which many perceive as inevitable and irreversible (Panic, 2011). Adam Smith was a pioneering 18th-century British economist who had strong arguments for free trade as macroeconomics. -economic approach to increase the wealth of nations (Stone, 1992). His depiction of free trade includes improving the standard of living of communities as a whole through increasing market size and decreasing prices. The main arguments advanced by Smith, as explained by Stone (1992), bear a striking resemblance to the ideas advocated by modern economists; Bhagwati (2007) states that scientific observation and evidence shows that globalization is a tool for poverty reduction and, above all, specifically indicates that free trade is the crucial element. His book contains many anecdotal examples of how trade has been used as a strategy to stimulate growth and increase wealth in various economies around the world. Bhagwati (2007) also mentions, however, that economic growth does not always truly lead to helping.... .. middle of paper ...... what is must move towards the understanding of Küpers (2011), where the responsibility is reduced to its elementary meaning of 'responsiveness'. It is therefore suggested that companies that have the capacity to respond to the needs of developing economies are in a position of responsibility. The fair trade movement is widely considered to be a highly significant CSR undertaking (Jones and Shaw, 2006), but this is distinct from CSR adopted by individual companies as the fair trade movement unites around rigid standards that they are not personally regulated as many of the alternative CSR initiatives are (Reed, 2009). If greater accountability is needed to make CSR effective in promoting justice, including enabling development through their supply chains, then third party involvement may be necessary (Macdonald, 2010).