Evaluation of Importance of Motives for Outward Foreign Direct Investment

Abstract

Tendencies of using outward foreign direct investment as the instrument for internationalization, integration and economic development became popular in recent decade. Before taking the entry decision abroad companies should estimate environmental and other factors (e.g. to compare possible profit in future with potential investment risk, to analyze how new investments could affect companies’ profit stability, competitiveness and productivity). The purpose of the research is to evaluate the importance of different motives in accepting investment decision abroad. The evaluation of importance of motives for outward foreign direct investment (further – FDI) is the key to quantitative substantiation of motives entering into the foreign country. Identification and evaluation of motives for outward FDI can cardinally change investment plans of a company and shift internationalization process activity in one or another way. The significance of obtained quantitative evaluation of motives for outward FDI is a solid basis for enterprise to decide either to enter into foreign country or not. It might cause a trend of investment decisions process changes and might help to avoid or reduce losses of false decisions.