Abstract
By definition, foreign direct investment is an investment made under different national governments. However, current literature and research on foreign direct investment have not properly incorporated host-country government policies into the investment decision process. This article develops a theoretical framework to investigate the interaction between policies of the host-country governments and performance of foreign equity investment. Based on the theoretical framework, a computerized simulation model is developed. The model may be used as a tool for analysis of real-world foreign direct investments and as an aid to develop negotiation strategies for foreign direct investments.
Keywords
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