The impact of international economic relations on the countries' share of international business.The Us vs China trade war

Abstract

Current trade war between U.S. and China, strongly affects international business and investment flows among them. The article aims to contribute to the understanding of investment flows and business investment behavior during the trade war. The study includes comparative analysis of two-way FDI flows between the US and China. The case analysis was used to understand the behavior of Tesla as an example of MNC. The key findings suggest that U.S. suffer more from this war than China and business make solution about investments to avoid governmental trade restrictions. China has a vital role in sustainability of GVCs and this country become primary destination for investments. Research findings can be useful in analysing investment flows during the trade war.