FDI from Developing Countries : A Vector for Trade and Development This book illustrates Koreas experience with outward foreign direct investment (FDI) and shows that the ancillary benefits of such investment knowledge and management transfer market acquisition and skills enhancement can be substantial for individual firms. Moreover the resulting increased robustness of these enterprises contributes to the strength and stability of the economy as a whole. While it is true that inward FDI carries similar benefits outward FDI driven by the prerogatives of the domestic company is integrated into existing business plans and strategies and therefore constitutes a more active policy. No experience is directly transferable but the Korean case shows that there is a large potential for other emerging economies to gain from FDI flows and that the initial costs from lost internal investment are largely outweighed by the medium term benefits.