Introduction With the development of economic globalization, foreign direct investment (FDI) is increasingly being recognized as an important factor in the economic development of countries. Although FDI began centuries ago, the biggest growth has occurred in recent years. This growth resulted from several factors, particularly the more receptive attitude of governments to investment inflows, the process of privatization, and the growing interdependence of the world economy. Foreign direct investment (FDI) occurs when a firm invests …
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…normally takes FDI into consideration. On the other hand, if a firm is in an oligopoly, it will be forced to undertake FDI for not being knocked out if its main competitors have established a subsidiary abroad. BIBLIOGRAPHY: Textbooks: Charles W. L. Hill, University of Washington, "International Business" 4th edition John D.Daniels, Lee H.Radebaugh, "International Business Environment and Operations" 7th edition Richard A.Brealey, Steward C.Mers, "Principle of Corporate Finance" 7th edition