tradeinvestment
Tradeinvestment is a term used to describe the interdependent relationship between international trade and cross-border investment. It refers to how investment activity, including foreign direct investment and portfolio investments, interacts with trade patterns, production location decisions, and supply chain development. Trade investments can be direct, such as a multinational corporation establishing production facilities abroad to serve regional markets, or indirect, such as investors funding trade finance instruments that reduce settlement risk and finance trade flows.
Policy frameworks that affect tradeinvestment include bilateral and multilateral trade agreements, investment treaties, export credit agencies,
Economic outcomes associated with tradeinvestment include potential efficiency gains from comparative advantage, increased specialization, and productivity
Critiques focus on policy distortions, capital mobility controls, and the uneven benefits across sectors and countries.