O 23 Motives for Foreign Investment

In recent years, many companies have been induced to enter into new and profitable markets abroad. Economic and political forces in the host countries, along with their desire to sell more abroad, are largely responsible for the expansion of direct foreign investment. Companies find it increasingly easier to reach foreign markets through direct investment. The product life cycle theory, the portfolio theory, and the oligopoly model have been suggested as bases for explaining and justifying foreign investment.

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