1945

Host country determinants of Foreign direct investment

It is widely agreed that foreign direct investment (FDI) takes place when three sets of determining factors exist simultaneously (Dunning, 1993a): the presence of ownershipspecific competitive advantages in a transnational corporation (TNC), the presence of locational advantages in a host country, and the presence of superior commercial benefits in an intra-firm as against an arm’s-length relationship between investor and recipient.

Related Subject(s): International Trade and Finance
Sustainable Development Goals:
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