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RESEARCH PRODUCT

Attractiveness of Countries for Foreign Direct Investments from the Macro-Economic Perspective

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Attractiveness and value adding characteristics of countries for Foreign Direct Investments usually are linked to new customers, upcoming demands, unsatisfied needs, competitive situations, etc. But they are also closely connected to macro-economic factors, which build the focus of this research praper. To make it more differentiable, those factors have been separated into five major dimensions: Political/Legal, Economic, Social, Technological and Intercultural Factors. Each of those factors consists of minimum five sub-factors which have been analyzed and taken into consideration. The aim is to find out, which factors influence the decisions for FDIs. If knowing that, stecific decisions can be set to make a country more attractive or to allow managers to base their decisions on a more fact-oriented basement. Main findings are, that managers allocate for a country selection the highest importance to the political stability and legal transparency. This is followed by the economic health of a country. Also the sub-factor “Infrastructure”, which is part of the technological environment, is of essential importance. The Intercultural Dimensions occupy a minor role in influencing the decision process. Derived conclusions from these results are, that countries can increase their attractiveness for foreign direct investments by putting focus to the political stability, more transparency and stable economic conditions.