Global Trade and Investment: Challenges and Opportunities in a Changing Economy

Abstract

In the 21st century, global trade and investment dynamics have undergone profound transformations, driven by rapid technological advancements, shifts in geopolitical power, and the ongoing effects of the COVID-19 pandemic. These factors have significantly influenced trade policies, foreign direct investment (FDI) flows, and market access for developing and developed economies alike. This paper examines the major challenges and opportunities faced by global trade and investment systems, with a focus on economic volatility, protectionism, digitalization, and the shift towards green and sustainable practices. Through an interdisciplinary approach, we explore the implications of these factors for policymakers, multinational corporations, and international institutions. The paper also provides insights into the future of global trade by analyzing emerging trends, such as regional trade agreements, digital trade, and the decarburization of industries. The aim is to provide a comprehensive understanding of the changing global economy and offer strategies for navigating the evolving landscape.