An Economic Blueprint for Assessing the Attractiveness and Suitability of Foreign Direct Investment in the Host Country

Abstract

Attracting Foreign Direct Investment or FDI is both an “art” and a “science.” In deciding upon a potential investment opportunity in a particular nation or region of the world, it is important to understand the strength of a domestic market and the factors that would make for a good investing opportunity. Some of these factors include national income, debt, currency issues, country classification, and the operational economic system—analyzed through both traditional and non-traditional measures. This article provides foundation information relating to these factors in the context of measuring and classifying economies and economic systems in relation to foreign direct investment.