Fdi and International Trade

International Trade & Foreign Direct Investment – an economic analysis

Table of contents

|I Introduction |3 |
|II International trade |4-7 |
|2.1 Benefits of international trade |4-5 |
|2.2 Major trends and flows in 2010 |5-6 |
|2.3 Explaining the trends and flows of 2010 |7 |
|III Foreign direct investment |8-12 |
|3.1 Benefits of FDI |8-9 |
|3.2 Major trends and flows of FDI in 2010 / 2011 |9-10 |
|3.3 Explaining the trends and flows of 2010/2011 |11-12 |
|IV Conclusion |13 |
|V List of references | 14-15 |

Introduction

This Paper explains how the particular figures and results of foreign direct investmens and the international trade accrued and what reasons are behind.
What conditions have to be complied, what the actual situation is and the amount of commitment, control, risk and profit potentia when entering a new foreign market.
First, the basic motivations and used theories that cause a firm to invest abroad or export and outsource production to national firms, have to be understood. But still we cant determine a