ABSTRACT
A locational theory for foreign direct investment (FDI) is obviously lacking. Corporate geography is inadequate in explaining the location of international business. Given the sheer variety of FDI and the myriad locational factors underlying the location of FDI, searching for an all-embracing theory for the location of FDI may seem futile. If all of FDI is classified into market oriented and export oriented, market size should be positively related to the amount of market oriented foreign FDI. The macroeconomic approach to FDI implies the existence of country of origin induced differences in FDI. The relevancy of various theories in explaining the location of FDI within a subnational context can be evaluated within a framework formed by the unit of analysis and the locational component in each theory. Locational decisions should be important components in both multinational enterprises's strategic and tactical planning. Distinct location behavior can derive from the differences of market and technology, as well as the differences between industries.
