The Motivation for Foreign Direct Investment

  • Stephen Hill
  • Max Munday


Before going on to examine the distribution of foreign direct investment in the UK there is a need to examine why FDI takes place, and what seems likely to determine its distribution and location. Foreign direct investment is typically the outworking of the activities of the multinational enterprise and so consideration of FDI must start with why firms become multinational. In this chapter the main developmental contributions to a theory of why enterprises engage in FDI are outlined. These theoretical contributions are provided as background to the development of hypotheses later in this volume to explain the regional distribution of FDI in the UK. The basic motivations for FDI by MNEs may provide clues as to why specific locations are chosen.


Europe Transportation Income Marketing Posit 


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Copyright information

© Stephen Hill and Maxim Charles Richard Munday 1994

Authors and Affiliations

  • Stephen Hill
    • 1
  • Max Munday
    • 1
  1. 1.Cardiff Business SchoolUK

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