Services
How do trade and investment relate?
Trade and investment are closely intertwined. Trade facilitates the exchange of goods and services, which can stimulate economic growth and create opportunities for investment. Investment, on the other hand, can enhance productive capacity, leading to increased trade. For instance, foreign direct investment (FDI) can bring in capital, technology, and managerial expertise, boosting competitiveness and attracting more trade. In turn, increased trade can provide incentives for further investment. This symbiotic relationship between trade and investment drives economic development.