The article examines how foreign investment and trade work together in boosting the demand for manufactured goods. By studying a group of EU countries, the US, and Japan, the researchers found that the stock of foreign investment plays a significant role in determining exports and imports. Traditional trade factors alone don't show a long-term connection, but when foreign investment is considered, there is evidence of a strong relationship between trade and investment. This suggests that foreign investment complements trade activities in the long run.