Author(s)

Bo Liu

Corresponding Author

Bo Liu

Abstract

Traditional theories of international trade and international direct investment are based on completely different analytical frameworks. However, with the development of economic globalization and people's deepening understanding of international trade and the phenomenon of international direct investment, people gradually find that international trade and international direct investment are actually different choices faced by the same enterprise. When they export or set up production bases in the host country, the factors that should be considered are largely similar. Therefore, some scholars try to fill the gap between international trade theory and FDI theory and establish an analytical framework that integrates international trade with international direct investment.

Keywords

Fusion Development Trend, International Trade Theory, International Direct Investment Theory.