Many global investors purchase securities in US firms to maximize their return and to minimize their risk, as the size of and economic stability in the US is quite appealing. The goal of FDI is to control assets, property, distribution systems, or companies located in another country. The United States is host to more FDI than any other nation, and the US has long been the leader in FDI in other countries. FDI is now and will continue to be a major stimulus for increasing globalization. Why Firms Engage in International Business.
Firms engage in international business for a variety of reasons.
The world economy is emerging with incredible speed, causing a variety of impacts on social, economic and political issues in the developed and the developing countries. The rapid movement of goods and services across international borders increases annually. The benefits accruing from increased competition in the form of a higher standard of living is appealing, although not without controversy. The more cautious cite national security concerns, environmental causes, and national sovereignty issues. The OECD makes policy recommendations concerning issues in global trade and conducts extensive market research into global trade practices and trends.