Question

What are the major host country determinants of FDI?

  1. What are the major host country determinants of FDI?

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Answer #1

FDI means foreign direct investment .FDI in developing countries flows for labour intensive and low technology production while in developed states it's depend on high technology.

When we are taking about its determinants then it's depend upon economic policy of host country, economic performance and attractiveness of national economy.

This depend upon size and growth potential of a national economy as well as natural resources endowment.

It's depend upon quality of workforce and openness to international markets.its also affect by quality of physical, financial and technological infrastructure.

It's determinants are infrastructure, return on investment and real labour cost as well as human capital.

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