Abstract
This chapter presents the evolution of theories that explain the activity of multinational enterprises (MNEs) and the development of foreign direct investment (FDI). The theoretical approaches that today concern the determinants of FDI are rooted in classical theories of international trade. From the theory of international trade, the literature on the activity of MNEs emerged, which ultimately developed into theories of FDI. Current approaches have been greatly differentiated since the early classical theories were applicable. Their evolution to date, along with the complexity of the modern global business environment, shows that it is impossible for a single approach to develop an explanation for the present activity of MNEs. The current complexity of the international business environment requires a universal—perhaps unifying—all-encompassing model of FDI determinants, which would assist policy makers and managers on an international level.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
