This technical note briefly introduces the reader to various Foreign Direct Investment related concepts and firm-level considerations. As discussed throughout the paper, a decision to participate in FDI can occur for various reasons. Some multinationals are motivated to invest abroad in order to sell to new markets. Others might view FDI as a way to access global natural resources. Most nations welcome investments from foreigners and see the funds as an opportunity to increase economic growth. Yet, other nations prefer to limit the influence of foreign firms and push domestic politicians to implement protectionist policies. One thing is clear, whether one is a strong supporter of FDI or a staunch critic, it is essential to have an understanding of this important business topic.
Foreign Direct Investment
Core Disciplines: International Business
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