Abstract
The importance of and growing interest in the causes and consequences of FDI has led to the development of a number of theories that try to explain why MNCs indulge in FDI, why they choose one country in preference to another to locate their foreign business activity, and why they choose a particular entry mode. These theories also try to explain why some countries are more successful than others in obtaining FDI. Thus, some of the theories try to explain outward FDI (why MNCs choose to invest abroad), whereas others try to explain inward FDI (that is, a country’s propensity and ability to attract FDI).
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© 2002 Imad A. Moosa
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Moosa, I.A. (2002). Theories of Foreign Direct Investment. In: Foreign Direct Investment. Palgrave Macmillan, London. https://doi.org/10.1057/9781403907493_2
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DOI: https://doi.org/10.1057/9781403907493_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-42615-7
Online ISBN: 978-1-4039-0749-3
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)