The decision regarding direct investment abroad: Nature, factors and determinants

Abstract

This article pursues as a basic objective the formulation of a theoretical proposal concerning the elements and determinants of the decision regarding direct investment. To do so, it begins with a succinct theoretical approach involving the clear differentiation and independence of the decisions regarding direct investment and exportation, within the process of the company’s internationalisation. It then proposes a model in which four forces: singular factors and aggregate factors, with a dual “push” and “pull” nature, will determine the decision regarding direct investment abroad, characterised by answering four basic questions as to What , How much, How and Where to make said investment.

Keywords:

Exportation, foreign investment, business decision, business climate, investment risk, investment attraction, investment promotion, competitiveness, internationalisation strategy