Complete 12 pages APA formatted article: International Management. Though it is impossible to make an accurate determination of the present value of foreign investments, the possibility of getting an idea of the rate and amounts of such investments and of the places in which they are being made interests’ managers and government leaders (Ball &. McCulloch 1982). Developed and developing countries as well as countries in transition consider foreign direct investment as one of the most important channel through which countries may obtain resources for its development (Hunya 2001).
Each home and host country government views the MNE and its direct investment projects as generators of income, employment, technology, and so on that must be regulated to obtain the best gains for the government (Grosse &. Kujawa 1988).
Investors from industrialized countries want to come to developing countries for the reasons that: They apprehend that the return on capital in their home country is not adequate. that they want to combine their capital with the cheap labor of the host country to reduce the cost of production. and that they want to utilize the raw materials of developing countries near their source.