英语论文网

al trade agreement notifications, many involving the new transition economies (World Bank, 2006). The flows in FDI internationally increased incessantly during the 1980s and 1990s with the sharpest rise in the late 1990s. One key finding is that the flows increased at a geometric rate, then attaining a peak of $1,411.4billion in year 2000 from $58billion figure recorded in 1985. The trends took a striking turn by declining between 2001and 2003 thereby attaining a low level of $564.1billion in year 2003. Both developed as well as developing economies of the world experience this, but the developed nations were more affected during the global recession.

Earlier research by Rostas (1948), Frankel (1955) and some Anglo-American study teams1 had shown that the labour productivity in US manufacturing industry was, on average, 2 to 5 times higher than that in UK industry. This difference was questioned. Researchers tried to seek out its cause, was this difference in productivity a reflection of the superior indigenous (and immobile) resources of the US economy? Or was it due to the more proficient way in which the managers of US firms harnessed and organised these resources? Dunning (2001). And how this could be transferred along boundaries. Hymer (1960; 1976) and Dunning (2001) tried to explain why the affiliates of foreign firms could compete successfully with domestic firms in supplying the latter’s markets and explained why the former firms chose to supply their markets from a foreign, rather than from a domestic, base. Dunning used the OLI eclectic paradigm to explain this. Ownership, Location and Internalisation where the advantages which Multinational companies had, these help increase foreign direct investment. The describing events of the 1990s required a careful review of the L I component of the OLI Paradigm; and of how this affected both arriving scholarly thinking, and the boundary between the Location choices and competitive advantages of both firms and countries. Dunning (2008) .The growing importance of inter-developed country M&As as a form of FDI in the 1990s, the expansion of all kinds of service investment, the geographical spread of FDI in R&D, the appearance of China as one of the foremost recipients of FDI, the more convivial stance towards FDI taken by most developing countries as, for example, is witnessed by the elimination of many restrictions to such investment, and the stepping up of the work of the Investment Promotion Agencies (UNCTAD,2007) . All these, and others, have greatly affected and for the most part widened the choice of location for MN. It then follows that institutional variable (including entry, performance and exit requirements imposed on foreign direct investors, degrees of corruption, competition policy, innovatory and tax systems, environmental regulations, and human rights) are expected to vitally affect the location decision of firms mainly in cases where MNE activity crosses over very diverse cultural margins . Alternatively, the FDI wave may be driven by more fundamental factors but breed optimism, which would in turn lead to a neglect of risk. Investors observing the behaviour of their peers, and possibly the success of their investment decisions, would thus learn to be overconfident, following a pattern described by Gervais and Odean (2001). In both cases, periods of booming FDI and availability of capital would be associated with increased optimism or carelessness abo