Reflection Paper (Dumon Report) Topic: International Trade and Foreign Direct Investment Rhea Mae M. Romero 4th Year- BS Accountancy T understand that the field of economics known as international trade theory researches the patterns, causes, and welfare impacts of global trade based on Mr. Dumon's report, Economics and international trade theory have evolved in order to evaluate the effects of trade policies, and this explains both the distribution of trade earnings and the pattern of international trade. Despite the globalization of commerce, it was noted that corporations are still obligated to follow by local rules and regulations, therefore they are concerned about the diverse political and legal systems in the world. The politics and government of a country depend on this political system. It is in charge of a wide range of regulations, statutes, groups, and attitudes. Each system's political ideas have an impact on the laws that regulate the local economy and commercial environment. I also understand the three sorts of a legal system on the basis of his report. The foundation of civil law is a huge body of laws that act as a code and are concerned with how the law should be applied to particular situations. In the entire world, it is the legal system that is most frequently used. Traditions and practice form the foundation of common law. In common law jurisdictions, judges interpret the law, and court judgments have the authority to make decisions. Theocratic law, commonly referred to as religious law, is founded on religious principles. The ownership position in a foreign firm or project made by an investor, company, or government from another nation is referred to as foreign direct investment. This expression describes a corporate choice to acquire a large interest in a foreign business. But because it creates strong, durable linkages between the economies of countries, this is a crucial part of global economic integration. Enterprises or governments looking for foreign direct investment will frequently select target businesses or projects in open economies that have a skilled workforce and above-average development prospects for the investor (FDI). One of its primary characteristics is the development of effective control over the foreign company, or at the very least, significant influence over its decision-making,