A STUDY ON GLOBAL FOREIGN DIRECT INVESTMENT TREND AND PATTERN

Abstract

Foreign Direct Investment (FDI) has increased dramatically during the previous four decades. Increased FDI flows reflect the rising internationalization and integration of economic activity throughout the world. Simultaneously, with the progressive shift in the reasons for FDI, as well as the movement of some location-specific benefits from developed to developing nations, the patterns and trends of FDI have undergone substantial change in recent years. TNCs' motivations have shifted from more traditional resource or market searching to efficiency or strategic asset seeking. The comparative cost issue has emerged as the primary motivator for foreign production. Significant changes may also be seen in the forms and sectorial distribution of overseas investments. The goal of this study is to track the trajectory of recent FDI flows from a global and regional viewpoint, as well as to investigate the causes for the prevailing trend and patterns.