Abstract

Global economy is expected to contract, consequence of a collapse of international trade with millions of failed businesses and lost jobs. Foreign Direct Investment (FDI) flows are fundamental to support the economic recovery. Developed economies and developing economies in particular must make a great effort to restore and increase capital inflows, especially in form of foreign direct investment. FDI inflows have long been the largest source of finance investment. FDI is an opportunity to support the crucial economic recovery. An internationalization model of FDI is built in order to be a driver to governments and firms to implement a success strategy to attract FDI to the country.

Highlights

  • The COVID-19 pandemic increased the number of poor people in the world as no crisis had done before [1,2]

  • Millions of workers and people living on a livelihood are at risk and about 130 million people will fall into extreme poverty if the economic crisis perseveres [3]

  • The study is based in the review of empirical studies and has the purpose of find out what are the determinants of Foreign Direct Investment (FDI), in order to discover the motivations that companies are looking for investment

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Summary

Introduction

The COVID-19 pandemic increased the number of poor people in the world as no crisis had done before [1,2]. The economic crisis of 2020 had a big impact on businesses, families and put social protection and health systems at risk. The catastrophe had serious impacts on the Fourth Industrial Revolution, on the digital economy, on human capital and underlined the gap between the economy and society [2]. Millions of workers and people living on a livelihood are at risk and about 130 million people will fall into extreme poverty if the economic crisis perseveres [3]. Governments must define the short and long-term policies to support the health and social system and as well the businesses activities and families [4]

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