Since 1980, International Country Risk Guide (ICRG International Country Risk Guide) has provided expert financial, political and economic risk analysis for investors and international business professionals. The ICRG evaluates both the obvious developments and the subtle factors that cursory annual reviews all too frequently miss. In this guide, we find that the political risk is given (100 points) which is twice the weight of financial and economic risk (50 points) Determinants of FDI Flows to Developing Countries (82-86)
Dunning (2008) put theoretical framework for, FDI determinants. the framework posits that firms invest abroad to look for three types of advantages: Ownership (O - The ownership-specific advantages “of property rights/patents, expertise and other intangible assets” allow a firm to compete with others in the markets it serves regardless of the disadvantages of being foreign because it is able to have access to, and exploit and export natural resources and resource-based products that are available to it.), Location (L – are those that make the chosen foreign country a more attractive site “such as labor advantages, natural resources, trade barriers that restrict imports, gains in trade costs and strategic advantages through intangible assets” for FDI than the others ), and Internalization (I – arise from exploiting imperfections in external markets, including reduction of uncertainty and transaction costs in order to generate knowledge more efficiently as well as the reduction of state-generated imperfections such as tariffs, foreign exchange controls, and subsidies) advantages; hence it is called the OLI framework. The framework identified four main categories of motivation for investment abroad by MNEs from developed economies: resource-seeking, market-seeking, efficiency-seeking, and strategic asset or capability seeking. Although no comprehensive theory of FDI exists, researchers have identified a number of variables as critical to FDI...
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