ABSTRACT
The increase in global flows of foreign direct investment (FDI) and the rise of multinational corporations (MNCs) has attracted much attention and been the subject of great debate in academic and government circles. In the early twentyfirst century, corporations seek to maximize their profits by entering new markets, accessing low-cost resources and production factors, creating global production and distribution networks and entering into strategic alliances with global competitors. Developing countries have come to realize the benefits of inward foreign direct investment (IFDI), which range from access to capital, advanced technology and know-how to employment and wealth creation. Accordingly, many countries formerly wary of or hostile to foreign investment have liberalized and deregulated their markets and revised their IFDI policies in order to attract inward investment that will enhance national competitiveness and enable them to sustain and even accelerate economic growth.
