Determinants of Foreign Direct Investment and the Advantages Theory

This study reviews three classic international business theories and some related empirical studies to identify the gaps in literature suggest future research directions. In studies, most analyses on determinants of FDI are centered concepts firm-specific, internalization, location advantages according monopolistic advantage theory, internalization OLI paradigm. These determine whether a firm will internationalize, how it enter foreign markets, where locate host country, perform market. However, set up with premise firm-specific cannot be used explain phenomenon emerging market multinational enterprises, which have emerged large numbers recent years. Simultaneously, these theories, focus manufacturing, need internationalization service industry in-depth greater relevance.