Author:
Abstract
Foreign direct investment (FDI) played a substantial role in the international economy after the Second World War. In the globalizing world, the most important phenomenon is making direct and long-term investments in host countries. FDI offers new technology and new workplaces to the country in which it is located, by purchasing any established factory or opening a new business in the host country. Today, world countries need FDI for economic growth and development. Theoretical studies on FDI lead to better understanding of the economic mechanism and economics at both the micro and macro level, thus creating new fields of study in economic theory.
Keywords
Abstract
Foreign direct investment (FDI) played a substantial role in the international economy after the Second World War. In the globalizing world, the most important phenomenon is making direct and long-term investments in host countries. FDI offers new technology and new workplaces to the country in which it is located, by purchasing any established factory or opening a new business in the host country. Today, world countries need FDI for economic growth and development. Theoretical studies on FDI lead to better understanding of the economic mechanism and economics at both the micro and macro level, thus creating new fields of study in economic theory.