MS60056E : International Trade, Finance and Investment Assignment: Individual Case study Report

MS60056E Task Description:

You are required to produce a 3,000-word individual case study report (choosing from option 1 or 2), analysing the opportunities and challenges of global trade and finance in 2025.

For your analysis, use the provided case study (below) and extend it with further desk research. You should compare the case study country with another economy or region of your choice.

Your report must address:

1. Trade Policies and Market Integration
2. Foreign Direct Investment (FDI) and Climate Finance
3. Financial Systems and Currency Fluctuations
4. Sustainable Development and ESG

Case Study Option 1: China’s Expanding Investment in Brazil (2025)

In September 2025, Reuters reported that Chinese investment in Brazil doubled, reaching $4.2 billion, making Brazil China’s third-largest global investment destination.

Key details:

• Most investments were in electric vehicles, green energy, and infrastructure.
• Brazil’s government positioned this inflow as part of its sustainable growth strategy, aligning with the UN SDGs.
• Chinese firms benefited from Brazil’s growing consumer market and resource base, while also securing strategic influence in Latin America.
• At the same time, global FDI flows remained weak according to UNCTAD, with many developing economies struggling to attract investment.
• Rising tariff disputes between the U.S. and China, coupled with currency fluctuations in Brazil (the Real depreciated against the USD in 2025), created uncertainty for businesses operating in the region.

Using this case study:

• Analyse Brazil’s position in global trade and finance, drawing on China– Brazil relations as an example.
• Compare Brazil’s experience with another economy/region of your choice (e.g., India, South Africa, EU, UK).
• Apply trade and finance theories (e.g., comparative advantage, FDI determinants, interest rate parity, exchange rate models).
• Evaluate opportunities (green finance, market integration, FDI inflows) and challenges (tariffs, FX volatility, dependency risks).
• Recommend strategies for policymakers and businesses to manage these challenges and leverage opportunities.

Case Study Option 2: India–Israel Bilateral Investment Treaty (2025)

In February 2025, India and Israel signed a new Bilateral Investment Treaty (BIT), aimed at strengthening trade, technology, and strategic cooperation.

Key details:

• The treaty is designed to provide legal protection to investors from both countries, encouraging cross-border investments.
• It aligns with India’s push to diversify investment partners amid global FDI slowdowns and shifting geopolitical alliances.
• Israel views the treaty as a gateway to expand its footprint in Asia, particularly in high-tech, defence, renewable energy, and agriculture sectors.
• The BIT is also seen as a step towards deeper economic and strategic relations, complementing existing defence and innovation partnerships.
• The agreement comes against a backdrop of global trade policy uncertainty (tariffs, supply chain realignments, and financial system fragmentation), making bilateral deals more significant.

Using this case study:

• Analyse the significance of the India–Israel BIT for both countries’ trade and finance strategies.
• Compare India–Israel cooperation with another country/region of your choice (e.g., Brazil, EU, South Africa).
• Apply trade and finance theories (e.g., theories of FDI, capital flows, interest rate parity, comparative advantage).
• Evaluate opportunities (FDI inflows, technology transfer, diversification) and challenges (geopolitical risks, regulatory barriers, ESG concerns).
• Recommend strategies for policymakers and businesses in India and Israel to maximise BIT benefits.