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Trade brought many new ideas and goods to Europe. A bustling economy created prosperous cities and new classes of people who had enough money to support art and learning. Italian city-states like Venice and Genoa were located on the trade routes that linked the rest of western Europe with the East. Both these city-states became bustling trading centers. Trading ships brought goods to England.
It is also a mistake to focus on production location when the imperative is to radically scale up production of vital medical supplies. Importantly, international supply chains will be needed to produce the billions of doses of COVID-19 vaccine we will soon need to manufacture and distribute. a. A. With the COVID-19 crisis, a new debate has emerged with respect to global value chains (GVCs.
Clearly FDI leads to more extensive personal interaction with foreigners and exposure to new ways of doing things than does trade. What the empirical evidence shows. Empirical studies of FDI's role in the process of transfer and diffusion of technology approach the issue in various ways. Most of them provide evidence that FDI exerts an efficiency-enhancing effect on locally owned firms.
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