Effects of International Trade Policies on Multinational Business Expansion

Author(s)	Madhav Dandona
Country	India
Abstract	This paper examines how international trade policies influence the expansion strategies of multinational enterprises (MNEs) through the lens of key publications by the WTO, OECD, and IMF. As global value chains (GVCs) deepen and production becomes increasingly fragmented, trade policy instruments - tariffs, non-tariff barriers, and services restrictions - play a critical role in shaping market access, cost structures, and investment decisions. The study synthesises institutional evidence to analyse how policy environments determine entry modes, foreign direct investment (FDI) flows, affiliate output, and production relocation. It highlights how trade policy shocks, such as the 2018–2019 U.S.–China tariff escalation, trigger rapid restructuring of supply chains and shift production across countries. The paper also evaluates measurement challenges and the evolving role of digital and services trade policies. The findings underscore that predictable, transparent, and liberal trade regimes are essential for sustaining MNE competitiveness, supporting economic development, and promoting resilient global production systems.
Keywords	International Trade Policies, Multinational Business
Field	Business Administration
Published In	Volume 8, Issue 1, January-February 2026
Published On	2026-01-12
DOI	https://doi.org/10.36948/ijfmr.2026.v08i01.64707

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