BOOK CHAPTER
FDI : BRIDGING NATIONS, BUILDING PROSPERITY
Lecturer: Eko Handayanto, Dr.,M.M.
Arranged by :
- Fera Alaidia Putri (202110160311610)
- Roro Bilkis Nurusifa (202110160311614)
MANAGEMENT STUDY PROGRAM
FACULTY OF ECONOMICS AND BUSINESS
UNIVERSITY OF MUHAMMADIYAH MALANG
2023
INTRODUCTION
According to Onody et al, (2022) Foreign Direct Investment (FDI) plays a pivotal role in the global economy, representing a fundamental aspect of international business and trade. FDI refers to the investment made by individuals, corporations, or governments in a foreign country's assets, such as companies, real estate, or infrastructure (Aluko et al, 2023). These investments are aimed at establishing long-term business interests, control, or influence in the host country. FDI can significantly impact a nation's economic growth, job creation, and technological advancements, making it a critical subject of study and analysis in the field of economics and international relations (Jardet et al, 2023).Then, according to Ullah et al. (2022) the concept of FDI has gained prominence in recent decades due to globalization, liberalization, and the increasing interconnectedness of world markets. As a result, countries have become increasingly proactive in attracting foreign investments through various incentives and policies. The competitive landscape for FDI has intensified as nations strive to create an environment conducive to foreign investors (Pacariz, 2022). Understanding the factors that drive FDI, the benefits it offers to both the host and source countries, as well as the challenges associated with it, is crucial for policymakers, businesses, and economists to navigate the complex dynamics of international investment (Mahbub et al, 2022).