The Impact of Globalization and FDI as a Business Internationalization Entry Mode on GDP: A General Analysis Using the Unifactorial Regression Model

As business in local markets may face various barriers and losses including local market competition, product similarity, political restrictions, lack of support, and shortage of resources. Companies try to invest abroad to avoid the local market’s barriers, saving its business perspective by getting involved in the internationalization process that has got various strategies and entry modes. Many companies decide to internationalize their business and themselves by choosing any of the international, multinational, global or transnational strategies. In this paper we aim to find out whether Foreign Direct Investments (FDIs) in the United States of America (USA), the European Union (EU) and China are correlated with the gross domestic product (GDP) and the impact of the FDI indicator on the GDP. In the research method we focus on a related literature review with a selection criteria and applying the unifactorial regression mode. Moreover, using a descriptive analysis we presented and analyzed the illustrated findings in different figure and we found out that there is a relationship between FDI and GDP and FDI is important for GDP growth in globalization. In conclusion, both FDIs and GDPs are considered drivers of globalization and indicators in local and global economies.