ABSTRACT
Foreign Direct Investment (FDI) and strategic alliances are among the most popular modes of international market entry and expansion in major markets by multinationals. About half of US firms’ FDI took place in Europe, with the UK being the leader as the destination for FDI. American, Japanese, and Korean firms engaging in FDI and strategic alliances in Western Europe are mainly motivated by the Single European Market Program, market development or expansion, the pursuit of global strategies, technology/knowledge and resource acquisition and risk sharing. Western Europe presents the largest market in the world, has a stable business environment and offers an excellent technology or knowledge base. Since 1989 there has been a rapid increase in FDI and strategic alliances in many Eastern and Central European countries as a result of the changes in their political and economic environment. The chapter also presents an overview of the key concepts discussed in this book.
