This dissertation lies at the intersection of international trade policy, international business, and political economy, focusing on developing economies. Guided by theory, I leverage rigorous empirical analysis to derive actionable insights and convey evidence-based policy and management recommendations. My first line of research delves into institutional quality as a factor for Foreign Direct Investment (FDI). I address this in my chapter Reputational Shocks and Commitment Devices: Differential Effects on Foreign Direct Investment in Developing Economies, where I evaluate how reputational shocks affect FDI inflows in developing economies in the context of Investor-State Dispute Settlement. My second line of research focuses on protectionism and economic tensions between China and the United States in a strategic industry. In my third chapter, Effects of Trade Barriers on Foreign Direct Investment: Evidence From Chinese Solar Panels, I find the effects of US anti-dumping and countervailing duties on FDI decisions by targeted Chinese firms in the solar panel industry. I follow up on chapter four, Unraveling Protectionism: Strategic Responses of Chinese Multinationals to US Trade Policy, documenting the financial impact of these trade barriers on the whole corporate family containing a targeted Chinese firm in the solar panel industry, and the strategies they develop as a response. My research contributes to understanding how political economy and geopolitical factors shape international markets and impact developing economies and multinational enterprises in unstable global environments.