Analysis of Currency Impact on International Investment
Keywords:
Foreign Direct Investments, FDI, Exchange Rate, FDI Theories, International InvestmentAbstract
The developing countries are highly attractive towards foreign direct investment for their economic growth. After the emergence of globalization, the FDI concept kicked up in the international market. During 1950s the companies were limited to capital market and portfolio investment. However, in 1960s globalization served as the strength to the companies to invest freely in others‟ economy which turned as the optimistic market position for both the investing and host countries. The FDI started capturing the international market by offering economic growth to the developing counties. So, they started promoting MNCs and other FDI by offering flexible policies to invest in their economy. All that development encouraged many economists and researchers to investigate the international market potential, international capital movement and MNCs‟ problems like expansion, production and foreign investment types. Consequently, they came up with many FDI theories and solutions for MNCs. In this context, the article discusses the economic growth on adoption of FDI in developing countries, the factors that influence it and examines various theories that explain FDI.Downloads
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