Trade liberalisation in emerging economies attracts foreign investment. A study of 6 countries from 1996 to 2014 shows that trade agreements play a significant role in influencing multinational companies to invest overseas. Factors like market size, development level, and human capital also impact foreign investment. Preferential trade agreements, which reduce barriers to trade and investment, have a positive effect on FDI inflows. This is especially true for countries that are not major sources of foreign investment.