Viet Nam, Cuba deepen wide-ranging ties

Globalization has increasingly made economic diplomacy a key component of foreign policy. Since production decisions made by Transnational Corporations (TNCs) are influenced by various domestic factors, the role of host governments has become more important for example in keeping transaction costs low. Participation in free trade agreements (FTAs) that go beyond trade in goods and services to include non-tariff barriers, government procurement, competition policy, and intellectual property protection is one key mechanism for keeping such costs low and through this attract foreign direct investment (FDI).