Bi-directional effects between international trade and investment are investigated. Different aspects of international trade are considered in separate models to observe the linkages between trade and FDI inflows. International trade, either measured by exports or imports, is found to be complementary with FDI inflows. Through trade, trade facilitation is identified as a key factor to induce FDI inflows to the host country from the home country. Bilateral FDI inflows are observed to have feedback effects with exports of not only the home and host countries but also on those of other trading partners. Similar linkages between bilateral FDI inflows and imports are also observed. The relationships between international trade and investment identified suggest a crucial role for policy harmonization to further benefit from globalization. Thus, countries would need to not only liberalize trade and investment but to do it in a harmonized and cooperative manner, implying the need for more coordination within trade and investment agencies at home, and the need for plurilateral or multilateral agreements covering both trade and investment...