In 2008, inward FDI accounted for some 63.7 percent of gross fixed
capital formation in Ireland but only 4.1 percent in Japan (gross fixed
capital formation refers to investments in fixed assets such as factories,
warehouses, and retail stores). What do you think explains this
difference in FDI inflows into the two countries?
. Compare and contrast these explanations of FDI: internalization theory
and Knickerbocker’s theory of FDI. Which theory do you think offers
the best explanation of the historical pattern of FDI? Why?
What are the strengths of the eclectic theory of FDI? Can you see any
shortcomings? How does the eclectic theory influence management