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Discuss typical motivations of governments in attempting to influence FDI flows.
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Discuss typical motivations of governments in attempting to influence FDI flows Ever since organisations decided to operate internationally through FDI or foreign direct investment, they have seen their operations either encouraged or restricted by either or both host and home government's policy. There are numerous reasons why some governments decide to restrict the flow of FDI and some governments decide to encourage the flow of FDI, reasons I will discuss later in the essay. But before I go into that, I must firstly explain a little about what FDI is and why it is so important to government and the organisations wishing to participate in it. Daniels, (2001, P.277) in 'International Business' defines a foreign direct investment (FDI) as "a company controlled through ownership by a foreign company or foreign individuals." Although just how much ownership is necessary for a company to control their foreign operations is not clear-cut. But what is...
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