International Trade and Foreign Direct Investment

In: Business and Management

Submitted By Liimah
Words 736
Pages 3
Alimatou TRAORE
Concept Application essay #1
International Trade- IBS390
Summer 2015

International Trade and Foreign Direct Investment


1. International Trade, what is it?

2. FDI : Definition and different types

3. Impacts of FDI( Foreign Direct Investment) on International Trade

4. Costs and Benefits of FDI( Foreign Direct Investment)



The world economy has developed over the past few decades in a great manner, regarding investment in particular and the way multinationals enterprises are now investing in the developing world to increase their production, assets, and interconnected market networks. Individuals everywhere in the world turn out to be closer than ever before. Goods and services available in one nation A will be instantly promoted in another country B or C. Universal exchange and communication became more basic. This current situation is called Globalization. Globalization is at the same time the primary cause and effect of the incredible growth of International Trade over the past decades. Thanks to International Trade, consumers around the world enjoy a wider range of products than they would if they only had access to domestically made products.

1. International Trade, what is it?
International trade simply refers to the movement of goods and services across borders. This activity gives rise to a greater competition and more competitive pricing in the market. However let’s not misperceive the concepts of international and domestic trade. There’s a huge difference between the two. For instance, international trade is usually more expensive than domestic trade and factors of production such as capital and labor are typically more mobile within a country than across countries.
International trade is a source of job opportunities and also leads to development of…...

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