Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result, these countries have

attracted both trade and foreign direct investment.

Explanation:

The free market reforms that took place in the newly industrialized countries (NICs) as in some Asian and Latin American countries, provided the attraction of foreign direct investment and increased trade.

This was due to the fact that lesser trade restrictions and free market reforms were significant incentives for foreign countries to seek investment opportunities in a country that could offer significant advantages, such as tax incentives, cheaper labor and conquering new markets. It also stimulated commercial activity by local and foreign investors, who saw new opportunities to implement activities locally that would bring competitive and economic advantage.

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