Abstract

Over the past two decades, the volume of world trade has tripled and the stock of foreign direct investment (FDI) has multiplied almost six times in real terms. By comparison, world gross domestic product (in volume) has multiplied 1.5 times. ¹ 1

WTO International Trade Statistics (2010) and UNCTAD World Investment Report (2010). Calculated for the period 1990–2009, using US GDP deflator for world FDI stock.

This expansion of trade and investment at a higher rate than output characterizes the globalization of production (Figure 11.1). Importantly, this is a combination of trade and investment. Figure 11.1 Source: WTO International Trade Statistics (2010) and UNCTAD World Investment Report (2010).