In other words, the ARAC MLA operates as an international passport to trade. The inflow of FDI often brings capital, skills and managerial know-how to developing countries and provides opportunities to local firms to supply products and services to FDI firms. This encourages greater integration of host countries into global value chains and provides them increased access to foreign markets (UNCTAD, 2013). During the early stages of industrialisation, developing countries usually have a comparative advantage in labour-intensive industries, because production costs in high-income countries are much higher meaning such industries are less profitable.