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Multinational Companies For Business Internationalization Through Foreign Direct Investment (Fdi) In Globalization: Trends For Values

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  • Anis BENABED

Abstract

This paper analyzes and describes multinational companies as a business internationalization strategy through foreign direct investments FDIs for business internationalization to reach business values in the frames of globalization. The analysis and results demonstrated that Multinational companies (MNCs) and foreign direct investments (FDIs) may face challenges and risks in new locations, economic and political instability, difficulties of infrastructure, distrust in the locations, locations, difficulties of balance in payment, challenging negotiations in business agreements and quality contracts, borders and transportation challenges, challenging in the market size. Multinational companies that go for foreign direct investment have an economic impact and can affect a country's economy in various ways, for example, in the balance of payments, in growth rates and in job creation. The effect of foreign direct investment by multinational companies can be negative or positive depending on certain factors. A multinational company's pattern of internationalization represents different factors of possibilities, costs, risks and difficulties faced during its internationalization. In conclusion, Foreign direct investment (FDI) is an important step towards business internationalization and if the domestic company decides to go multinational towards FDI, it has to consider the factors of ownership, location and internalization to reach business internationalization as confirmed in Dunning's framework and this analysis.

Suggested Citation

  • Anis BENABED, 2024. "Multinational Companies For Business Internationalization Through Foreign Direct Investment (Fdi) In Globalization: Trends For Values," Eastern European Journal for Regional Studies (EEJRS), Center for Studies in European Integration (CSEI), Academy of Economic Studies of Moldova (ASEM), vol. 10(1), pages 137-155, June.
    • Handle: RePEc:aem:journl:v:10:y:2024:i:1:p:137-155
    DOI: https://doi.org/10.53486/2537-6179.10-1.08
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    References listed on IDEAS

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    1. Jean–Luc Arregle & Lucia Naldi & Mattias Nordqvist & Michael A. Hitt, 2012. "Internationalization of Family–Controlled Firms: A Study of the Effects of External Involvement in Governance," Entrepreneurship Theory and Practice, , vol. 36(6), pages 1115-1143, November.
    2. Jean-Luc Arrègle & Lucia Naldi & Mattias Nordqvist & Michael Hitt, 2012. "Internationalization of Family-Controlled Firms : A Study of the Effects of External Involvement in Governance," Post-Print hal-02312678, HAL.
    3. Jan-Erik Vahlne & Inge Ivarsson, 2014. "The globalization of Swedish MNEs: Empirical evidence and theoretical explanations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(3), pages 227-247, April.
    4. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    5. Anis Benabed, 2023. "Multinational Companies as a Business Internationalization Driving Strategy: Implications for Competitive Advantage and Business Values," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 12-19, December.
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    Keywords

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    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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