The Motivation for Foreign Direct Investment

Stephen Hill and Max Munday
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Stephen Hill: Cardiff Business School
Max Munday: Cardiff Business School

Chapter 2 in The Regional Distribution of Foreign Manufacturing Investment in the UK, 1994, pp 15-28 from Palgrave Macmillan

Abstract: Abstract 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.

Keywords: Foreign Investment; Direct Investment; Foreign Firm; Multinational Enterprise; International Production (search for similar items in EconPapers)
Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-13101-3_2

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DOI: 10.1007/978-1-349-13101-3_2

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