The new trade theory begins to focus on the integration of international trade theory and international direct investment theory

Traditional international trade theory has studied trade and investment issues in isolation. Economic globalization has led to the realization that trade and investment are actually different ways of choice in the international operation of manufacturers, and that the factors to be considered in exporting or establishing a base in a host country are actually similar, and that international trade can be seen as the international movement of factors in the form of commodities. After World War II, multinational corporations became the main carrier of international economic life and had a significant impact on the pattern of international trade. Therefore, some scholars began to place trade and investment in a unified framework for research, focusing on the integration with international direct investment theory is also one of the important features of the new trade theory.