During the last two decades foreign direct investment (FDI) in the world economy has increased 10 times, while trade increased by a factor of 3. These international flows have been perceived vital for economic growth. The first chapter of the book explores characteristics of transition economies that attract FDI while the second deals with exports of labor-intensive products from developing countries. From the beginning of the transition process expectations were that very well educated labor force and relatively low labor costs will be the main attractive forces. Surprisingly, experience has shown that this has not happened. Results of this analysis prove that only after transition process has reached certain level, low labor costs become significant for FDI inflows. Further, this work also shows that the abundance of low skilled labor (as expected), but also of capital and the state of transportation infrastructure are crucial for success in export of labor-intensive products. This analysis sheds light on the important questions of FDI and trade, and should especially be useful to researchers, or anyone who may have intellectual interest in contemporary international issues.