A Critical Analysis of Economic, Political, and Financial Determinants Influencing Location Choices of Foreign Direct Investments
Journal: Financial economics research.
Year: 2024

This paper critically examines the determinants influencing the location choices of foreign direct investments (FDI), focusing on economic, political, and financial risks. The research explores how country risks—political stability, corruption levels, and democratic accountability—affect multinational corporations' (MNCs) decisions to invest. It also investigates financial risks, particularly exchange rate volatility, and its impact on FDI, finding that higher volatility deters investment. Addit