As economic integration continues, the distinction between domestic and international issues becomes more tenuous. Enhancing coordination and coherence among international trade, investment and domestic policies is of increasing importance for developing countries of the Asia-Pacific region to compete effectively and reap the benefits of globalization. In this context, this publication brings together a number of papers that highlight the increasing significance of trade and investment linkages and their effect on the development of domestic industries and services. The first two chapters focus on investment provisions and regulation through trade agreements, while the third chapter concentrates on the issue of rules of origin in those agreements and the need for more coherent and harmonized approaches to the design of those rules. The fourth chapter explores in some detail the interactions between foreign direct investment flows and import and export flows using a gravity model approach. Chapters V and VI are country case studies that examine the linkages between trade and investment liberalization and the development of small- and medium-sized enterprises in Indonesia, and education services in Malaysia, respectively. The last chapter examines the drivers of outward foreign direct investment from the developing economies in the region.