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increase FDI inflows using several instruments (Chakrabarti, 2001). Location-specific factors will always influence the decision to enter or exit a location for investment purposes (Audretsch and Fritsch, 2002).

FDI is a key element of the international economic relations as it is an engine of employment, technology transfer and improvement of productivity, which ultimately leads to economic growth. The need to attract FDI forces governments to provide a favourable climate for business activities (Nordstrom, 1991). The foreign firms can be influenced by the political and economic institutional framework of the host country, which could affect the choice of where to invest their capital (Makino and Chan, 2004).

The challenge of this research is to explore which location determinants make a region attractive for FDI. The definition of the problem is:

What should Swedish regions do to positively influence FDI?

By presenting a thorough overview of FDI and the determinants that could influence the location choice for a company, this research aims to provide a framework, tested in interviews for the applicability of investments.

1.3 Research questions

To solve the problem the following research questions are answered:

What is FDI?

Based on a literature review that provides theoretical information on this phenomenon.

What are the location factors?

Galan and Gonzales (2007) are used as basis for the location factors. Several other papers on location factors are evaluated and criticized.

What does Sweden have to offer?

This final question deals with the application of the theoretical framework to Swedish region as case study and the relationship between the factors they possess and the factors they need to stimulate to influence FDI.

1.4 Purpose and Objective

The purpose of this thesis is to examine which regional factors influence foreign direct investments. Theories regarding FDI and location-specific characteristics will be reviewed and analysed in the theoretical framework. A thorough overview of the location factors will be part of the framework that can be used by regions, willing to attract sustainable investments. But first of all, the objective as described in the definition of the problem is to give recommendations to Swedish regions regarding the factors they should highlight to attract or influence direct foreign investment.

1.5 Research Design

The literature framework is based on relevant papers. According to Ghauri (2005), theoretical data will be used to understand and interpret the research question, and it will help to “broaden the base from which scientific conclusion can be drawn”. The relevance of the papers will be based on quality. To reach the goal of collection qualitative data for the research question, a phased selection is made. The emphasis of the courses Corporate Level Strategy and Research Methods of Strategy within the master Strategic Management is on testing all data on quality. By examining the relevance, publication form and impact fac本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。