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Which theories attempt to explain why firms undertake foreign direct investment? Which one is the...

Question:

Which theories attempt to explain why firms undertake foreign direct investment? Which one is the most appealing and why?

Foreign Direct Investment:

Foreign direct investment is a form of investment which is done by one individual or a business organization of one country in another different country for expansion of its business purpose. FDI is very important for the development of any economy. Every under developed and developing country try hard to attract FDI for its economic development.

Answer and Explanation: 1

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The theories of Foreign Direct Investment is as follows-

a. Production Cycle Theory of Venom

b. The Theory of Exchange Rates on Imperfect Capital...

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FDIC: Definition, History & Purpose
FDIC: Definition, History & Purpose

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Chapter 19 / Lesson 13
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What is the FDIC and when was it created? In this lesson, learn what FDIC stands for and why the FDIC was created. Learn about the FDIC's purpose, function, and history.


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