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Discuss typical motivations of governments in attempting to influence FDI flows As a definition in itself foreign direct investment is an investment that gives the investor a controlling interest in a foreign country. Production facilities abroad comprise a large part of international companies, activities and strategies. We can give an example here of Bridgestone and whether they wanted to serve foreign markets. Bridgestone had to sell new products domestically or had to sell abroad if it was to renew its growth. This would pose risks. Bridgestone's plan was to sell its products because there was more of a competitive advantage in producing the tyres than to know the Japanese market as a whole. (International Business E & O 9th edition 2001, Daniels & RadeBaugh) This figure above shows how FDI is set in international business. Governments and investors have concerns about control and here are some factors to consider. Critics say that a...

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