A REVIEW OF THEORIES ON FOREIGN DIRECT INVESTMENT
Journal Title: Экономика и финансы - Year 2014, Vol 1, Issue 5
Abstract
Many researchers have studied foreign direct investments (FDI) due to their increasing role and importance. In the earlier studies, it is noticed that researchers were critic to the effects of FDI in host countries, which made them focus more on developing the theories of FDI, or verify the empirical evidences through which explanatory answers of key questions on FDI would be clarified. Some of the questions posed here are: why a firm would decide to extend its own activity in other countries? How can a foreign firm compete with the domestic ones in the host country? The answers of these questions can be found in the theories of FDIs, some of which are presented in more detail in this paper.
Authors and Affiliations
A. Zisi
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