LOCATIONAL DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN THEORY OF ECONOMY

Abstract

The aim of the article is the evaluation of changes in the theoretical literature describing locational determinants of foreign direct investment. The choice of the right location of economic entity outside of the home country is a complex process, which requires a throughout analysis of a set of various determinants affecting i.a. the competitiveness of economic entity. The complex nature of the analyzed area effected in the emergence of various theories trying to explain the determinants of firms’ internationalization. The number of factors, as well as their contribution in the locational process has evolved in time. Thanks to the technological progress and economic development of the societies, new factors affecting FDI’s locational decisions emerged.