"The interrelationship between trade, domestic investment and foreign direct investment (FDI) is complex, intrinsically interlinked and changing. In the past, FDI has been principally used either to develop a specific natural resource or for tariff-jumping whereby a multinational enterprise (MNE) avoids paying tariffs by producing the good in the host jurisdiction. That has likely changed. Today, MNEs are more frequently efficiency-seeking – benefiting by using a host country’s cost advantages and scale economies to rationalise production." (Quoted from paper)