Foreign direct investment theories with special reference to emerging mnes: A critique

Globalization has led to the expansion of interaction among the different countries of the world. Foreign direct investment gained importance with the emergence of globalization, particularly, after the Second World War. The world investment market was largely controlled by developed economies until emerging economies initiated foreign direct investment. The foreign direct investment theories were designed on the basis of the pattern of investment exhibited by the developed economies. However, the rising level of foreign direct investment from emerging MNEs has provided a reasonable cause to revisit the conceptual framework as well as the policy construct of investment theories. The present study aims to provide a theoretical framework to the studies which deals with foreign direct investment from emerging economies. The study is an amalgamation of investment theories and internationalization process which specifically caters multinationals from developing nations.