ABSTRACT
The strategy of investors can be influenced by both the investment measures of host countries and the overseas investment policies of home countries. Depending on the diverse policies of host countries, foreign investors have been encouraged or discouraged. For example, host governments can encourage foreign investments by the simplification of the procedures and the acceleration of decisions concerning investment approvals (Wells and Louis 1983: 144). They can also discourage foreign investments by complication of the procedures and the delay of decisions concerning investment approvals. The overseas investment policies of home countries have been almost as diverse as those of host governments (Wells and Louis 1983: 144). Depending on the diverse policies of home countries, their firms should set up their foreign investment strategy. For example, Mexico and Hong Kong do not require approval for their firms to invest abroad, while some other countries (Korea and Taiwan, for instance) require potential investors to obtain permits. Some countries, such as India, have fairly explicit rules. The Indian government requires its firms to enter joint ventures when they go abroad, and in the past required them to limit contribution to Indian machinery and to export no foreign exchange (ibid.). Most home governments, as is the case in Brazil, for example, appear to put primary importance on any exports that a project might generate from the home country or any access to raw materials needed at home (ibid.).
