There is a rationale within the classical context for the argument that a policy of international aids and grants financed by the countries who gain from foreign direct investment (FDI) could be beneficial to the promotion of free trade and investment and to all participants, even when the potential aids recipients observe improvement in their terms of trade as a consequence of FDI. Specifically, FDI in an extended classical (Heckscher-Ohlin) context could be a stimulus for an income-reducing improvement in the terms of trade of a participating country. However, the real income gains by the participating countries do not form a zero sum and the net effect on the world income is positive.