TITLE:
Foreign Direct Investments: A Survey and Review of Literature
AUTHORS:
Stavros G. Efthimiou
KEYWORDS:
FDI, Economy, Development, Globalization
JOURNAL NAME:
Theoretical Economics Letters,
Vol.14 No.6,
December
19,
2024
ABSTRACT: In today’s globalized environment, businesses, as well as economies in general, are called upon to meet the ongoing economic, social, political, environmental, and technological challenges so that they can be fully competitive. Market globalization and internationalization of economic relations, which have existed in recent years, have led to a rapid increase in trade flows, money, and capital flows. The purpose of this paper is to capture the phenomenon of FDI, its motivations, and its potential effects in host or source countries. Multinational enterprises play the most important role in the development of Foreign Direct Investments. In this paper, definitions of Foreign Direct Investments will be provided, as they are recorded in the bibliography review. Their components, such as the types and the forms, as well as the objectives and motivations of FDI, will be analyzed. The literature review for this study concludes with factors that push government entities to turn to Foreign Direct Investments, as well as the impact on host and source countries.