engleski

Analysis of Market-Based and Production-Based Factors on Country's FDI Inflow

Foreign direct investments present an important internationalization strategy which gave rise to $1, 5 trillion in transactions world wide in 2007. This provides strong reason for understanding the drivers of FDI, especially because governments are generally interested in providing incentives to the investors to direct their FDI activities toward their country. Authors in this paper address the factors influencing FDI inflow in specific countries. Factors are grouped into market-based factors – reflecting the importance of host market size and purchasing power ; production-based – reflecting production process inputs importance ; and context-based – reflecting importance of contextual factors surrounding the FDI activities. To analyze these factors authors conduct both primary and secondary research. Taken together, primary and secondary data show that market-based factors exhibit the highest importance for levels of FDI investments in different countries. At the end authors propose implications and ideas for further research.

Internationalization Strategy; FDI; Marketing; Market-Based Factors; Production-Based Factors; Context-Based Factors

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