Introduction

This introduction presents an overview of key concepts discussed in the subsequent chapters of the book. The book provides basic concepts relating to the theories of international integration and international production. It presents a brief background to trade theories, and illustrates how they can be linked to the theories of international integration and international production. The book highlights the conceptual aspects of the theory of international integration, but puts more emphasis on the dynamic effects and less emphasis on the static effects. It briefly highlights the global and regional foreign direct investment (FDI) trends during the past three or so decades when its economic influence became an issue of interest in the social, economic and political environment. From the pro-globalisation activists' viewpoint then, the FDI-related benefits generated from regionalism are bound to outweigh those that would originate from free trade. The economic aspect of sustainable development relates to the current and future effects of the economy on the environment.