In today’s episode, we take a deep dive into the foundational theories of international trade and investment. From Adam Smith's groundbreaking concept of absolute advantage to Michael Porter's competitive diamond model, we’ll uncover how these frameworks explain global trade dynamics. We'll also explore modern approaches like the product life cycle theory, new trade theory, and Dunning's eclectic paradigm, shedding light on how companies make decisions to invest abroad. Whether you’re curious about comparative advantage, economies of scale, or the role of foreign direct investment, this episode delivers essential insights for navigating global markets. Tune in to expand your understanding of the forces shaping international commerce!