The Relationship Between International Trade and Foreign Direct Investments: A Case Study of a Major OECD Country

The focus of the essay is the relationship between international trade and foreign direct investments. The relationship will be assessed in the case of a major OECD country, which has a very open economy and is hosting a significant level of foreign investments, Austria. Although generalizations are not allowed, the relationship between these two factors is very important, especially in the ramifications of integration. The international economy has been a major issue in the latest era. Several debates have focused on its limits - interrogation seems natural, considering the importance of the phenomenon. Several paradoxes have appeared: the liberalization of trade, an essential basis for trade and greater general welfare, does in fact benefit only a few particularly economically developed countries? If this were the case, we ought not to be surprised that a majority of countries (especially among the non-OECD Member countries) are against it